Weak inflation data dampens euphoria on the US stock market

Modern markets, like the weather, have their moods. Sunshine and record highs, followed by an unexpected turnaround due to disappointing consumer price data: Investors, driven by the hope for monetary easing from the US Federal Reserve, were recently better informed. The persistence of inflation represents a bitter disappointment, a 'bitter pill' as market strategists would put it. The response was accordingly clear: Tech values, typically sensitive to interest rates, took a hit, with the Nasdaq 100 losing significantly. After a triumphant peak the previous day, the tech-heavy index quickly found itself in correction mode. The Dow Jones Industrial and the S&P 500 also retreated from their heights, with the latter even slipping below the symbolic 5000-point mark. This was due to the price pressure not subsiding to the hoped-for extent, which led Wall Street strategists to anticipate a restrictive interest rate policy - a brake on the growth of corporate profits and the economy. The mood further darkened in the sector panorama. Coca-Cola experienced a roller coaster of stock prices despite initially positive reception of quarterly numbers. However, by the close of trading, the shares were down, as the prospect of falling beverage prices made investors more cautious. Meanwhile, Boeing was faced with a balanced tally of orders and cancellations, a development that analysts consider unsurprising in the context of current challenges. The aircraft manufacturer's shares declined markedly. Conversely, Carl Icahn's entry into JetBlue led to a surge in share price, with his words carrying significant weight. The travel website Tripadvisor also managed to excite with the prospect of an impending takeover interest. However, a tragedy also emerged as a landslide in an SSR Mining gold mine in Turkey led to heavy losses in its securities. The US data also did not leave the euro untouched; the currency gave up potential gains. A parallel development was seen in the bond market, where the prices of ten-year bonds fell, which in turn led to a rise in yield - a reflection of the financial world's nervousness, where today's confidence can turn into tomorrow's caution.