NEW YORK: Stock indexes were lower globally on Monday with technology shares on Wall Street falling, while US Treasury yields traded little changed even after a report showing the highest prices ever paid in a May manufacturing survey for New York state.
Concerns over inflationary pressure helped to lift gold prices to their highest in more than three months, however.
The Empire State Manufacturing Survey, produced by the New York Fed, showed the prices paid index rose to a record 83.5, the highest since the data series began in 2001, said Tom Simons, money market economist at Jefferies & Co.
Wall Street’s declines follow the S&P 500’s biggest one-day jump in more than a month on Friday.
ChinaStocks fall as tech shares weigh; gold rises amid inflation concerns
Caroline Valetkevitch
4 minute read
Stock indexes were lower globally on Monday with technology shares on Wall Street falling, while U.S. Treasury yields traded little changed even after a report showing the highest prices ever paid in a May manufacturing survey for New York State.
The S&P 500 technology sector (.SPLRCT) was down 0.9% and was the biggest drag on the benchmark index.
Concerns over inflationary pressure helped to lift gold prices to their highest in more than three months, however.
The Empire State Manufacturing Survey, produced by the New York Fed, showed the prices paid index rose to a record 83.5, the highest since the data series began in 2001, said Tom Simons, money market economist at Jefferies & Co.
Market at odds with Fed as U S inflation expectations hit 10-year highs theglobeandmail.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theglobeandmail.com Daily Mail and Mail on Sunday newspapers.
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U.S. inflation expectations have surged to the highest in a decade as the economy reopens from COVID-19-related shutdowns, putting investors at odds with the Federal Reserve which sees price pressures still far from its target.
Inflation expectations as measured by breakevens on Treasury Inflation-Protected Securities (TIPS) over the coming five years jumped to a 10-year high of 2.73% on Monday.
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The jump comes at the same time that Fed policymakers talk down inflation expectations, saying near-term inflation will be transitory and that there are challenges in reaching their average target of 2% on an ongoing basis.
The U.S. Treasury Department is expected to keep the sizes of debt auctions unchanged for a second-consecutive quarter when it announces its quarterly refunding next week, analysts said.