Stronger growth may also limit fiscal stimulus
The major US indices are opening lower after the stronger retail sales and PPI inflation. Concerns about the potential for higher rates and also for more limited fiscal stimulus, has investors concerned. The NASDAQ index is leading the way with a decline of close to 1% in early trading.
A snapshot of the market currently shows:
- S&P index -23 points or -0.57% at 3910.24
- NASDAQ index -126 points or -0.9% at 13922
- Dow industrial average -96 points or -0.3% at 31425
in other markets:
- spot gold is trading down $13.70 or -0.77% $1780.76
- spot silver is trading down $0.18 -0.7% at $27.05
- WTI crude oil futures are trading down $0.23 or -0.37% at $59.81
- bitcoin is trading up $2390 at $50,963. That's up 4.9%
In the US debt market, although there is concern about stronger growth and the potential for higher rates down the road, yields are actually lower today after the run up lately.
- 2 year 0.111%, -0.8 basis points
- 5 year 0.557%, -1.6 basis points
- 10 year 1.280%, -3.3 basis points. The yield hit a new high cycle high at 1.331% earlier today
- 30 year of 2.04%, -5 basis points. The yield hit a new cycle high at 2.11% earlier today.
In the forex, the USD is higher from the New York opening, but not as strong as the JPY which has now reversed and is lower on the day. The JPY crosses are all getting hit and trading at session lows as stocks retreat.
