Friday, May 31, 2024

Global markets are falling owing to interest rate fears

Wednesday and Thursday, major measures saw big drops in the stock markets around the world, which kept pushing prices down. Concerns about higher interest rates caused the FTSE 100 to drop sharply. The Dow Jones Industrial Average fell more than 400 points, the S&P 500 fell by 0.74 percent, and the Nasdaq fell by 0.58 percent. Auto Trader saw a surge in its shares following a 26% rise in operating profits. AstraZeneca performed strongly after receiving a positive recommendation from Goldman Sachs. De La Rue is contemplating splitting up the group. Dr. Martens is planning cost-cutting measures following a 43% profit decline. After lowering its profit expectations, American Airlines' stock fell sharply. After BHP Group decided not to make an offer for Anglo American, its stock went down. McDonald's denied that costs were going up faster than inflation. There were rumors that former President Trump met with Elon Musk, the CEO of Tesla, to talk about a possible advisory role. When data showed that inflation was rising, the bond market responded strongly. As a result, benchmark yields hit their highest level in over a month. Higher borrowing costs had an effect on mortgage rates and loan applications in general. Even though US oil stocks dropped more than expected, crude prices fell because people were worried about rising interest rates. The Federal Reserve confronts the challenge of taming inflation without triggering widespread job cuts. US stock futures were down on Thursday amid worries over Treasury yields and possible Federal Reserve interest rate adjustments. Salesforce shares plunged by 16% following disappointing second-quarter guidance. Activist investor Nelson Peltz sold his Disney shares after an unsuccessful proxy battle. UBS reorganized its leadership team and is contemplating CEO succession. The market remains cautious amidst economic uncertainties and corporate developments, with investors vigilantly tracking economic indicators and company performances for future market trends.


Summary News

People around the world sold off their stocks sharply because they were afraid of interest rates going up. Prices also went down because of this. All of these stocks went down: the FTSE 100, the S&P 500, the Nasdaq. Auto Trader's stock price went through the roof after the company made 26% more money. They did well after Goldman Sachs gave them a good idea. De La Rue might do something to split up the group, and Dr. Martens wants to save money. The price of American Airlines dropped after the company said it expected to make less money. On the bond market, this made a big deal, and standard yields hit their highest level in more than a month.


Source: Morning Bid: Global yield spike saps risk appetite

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