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Investors are key to nerve testing as far as inflation is concerned
For too long, more than a year, money management has been fairly common, with stocks higher. This raises concerns that something is going to go wrong and puts pressure on a few stock market items.
Earlier this month Janet Yellen was in charge of removing a bit of that foam. At a ceremony hosted by Atlantic Magazine, the former president of the Federal Reserve, now the U.S. Treasury Secretary, he said words that caused fear at the heart of some market participants: “Interest rates may need to rise slightly to keep our economies from overheating.”
U.S. technology stocks are falling ahead of inflation data
U.S. technology stocks fell on Monday as investors found more signs of inflationary pressures in the world’s largest economy.
The S&P 500 blue chip closed 1 percent lower, and the technology-focused Nasdaq Composite took a two-day victory to slip 2.6 percent.
U.S. government bonds went on sale, sending higher yields to a longer date. The 10-year Treasury benchmark traded at 1.6 per cent, up roughly 0.03 per cent on the day.
Analysts expect Wednesday’s data to show that US prices rose 3.6% in April compared to the same hour last year. Chinese plant prices, an early indicator of price pressures from Western importers, are projected to fall by more than 6 percent in a report to be released on Tuesday.
Consider a Value ETF to Ride the Expanding Economy May 3, 2021
Encouraging economic data and news of another government spending plan, have bolstered ETFs with greater weight in economically sensitive sectors.
The U.S. economic expansion accelerated in the first quarter after massive government aid to households and businesses. A labor market report revealed 553,000 people filed for unemployment benefits two weeks ago, compared to 566,000 in the prior period, Reuters reports.
Nancy Vanden Houten, the chief economist at Oxford Economics, pointed to two factors supporting the economy now, including the reopening of the economy and aggressive stimulus efforts from both the federal government and Federal Reserve, the Wall Street Journal reports.