Inflation in America continues to pressure the Federal Reserve and stocks (Al-Araby Al-Jadeed)
US Treasury yields continued to record levels not seen in years, to maintain pressure on stocks, on the second day in a row of declines, and if it remains Hope In achieving a rise only one day before the end of the week.
And with the continued rise oil priceswhich the investor in America sees as a sign of continuing high inflation, and then more pressure on the Federal Reserve toraise interestInvestors have bought benchmark 10-year bonds with yields above 4.23% for the first time since 2008, the height of the global financial crisis.
The high returns caused the stock indices to decline, with the S&P 500 losing 0.8% of its value, the Nasdaq index declining by 0.61%, while the Dow Jones Industrial Average only declined by 0.30% during Thursday’s trading.
Despite US President Joe Biden’s decision on Tuesday to withdraw 15 million barrels from the country’s strategic oil reserves, global oil prices continued to rise, by more than 2% during today’s trading, before declining towards the end, stable at the price of 92.38 dollars per barrel of Brent crude, and 85 $98 a barrel of US West Texas crude.
The high yields also strengthened the greenback, to exceed its price of 150 yen for the first time in 32 years, while the sterling compensated some of its losses after the announcement of the resignation of Prime Minister Liz Terrace, to reach 1.1235 against the dollar, while the euro remained stable below the level of 98 cents.