London, Wednesday, 11 May 2022
US Markets Summary
The Dow fell 326 points, the S&P 500 fell 1.65%, and the Nasdaq fell 3.2 percent in the final hour of trading on Wednesday, as stronger-than-anticipated inflation data reinforced the idea that the Federal Reserve may be compelled to raise rates sooner than planned, sending the economy into recession.
The annual rate of inflation in the United States fell to 8.3 percent in April, missing market expectations of 8.1 percent, while core CPI rose 6.2 percent, beating predictions of 6 percent.
Adding to the worries, Atlanta Fed President Bostic said he's willing to "move more" on rates if inflation remains high.
Coinbase, the largest cryptocurrency exchange in the United States, fell more than 26% after reporting a quarterly loss and a 19% reduction in monthly users.
Toyota also fell over 4% as the automaker said it anticipates net profit to fall by 21% this fiscal year due to rising material and logistical expenses.
European Markets Summary
On Wednesday, European stock indices finished far above the flatline, with the DAX up 2% and the Stoxx 600 up 1.6 percent, led by energy, luxury, and auto firms, which were boosted by positive earnings reports.
Thyssenkrupp upped its sales and operational profit forecasts, Tui said it intends to return to profitability in 2022, ITV reported a "strong" first quarter, and Continental reported considerable revenue growth year over year.
Earlier, the rise came to a halt as the US reported higher-than-expected April inflation data, implying that price pressures will take longer to subside and raising the potential of more aggressive monetary policy tightening, while betting on rate hikes in July in the Eurozone remained high.
(Written and edited by: The Decision Maker)