Global Market Square
The U.S. and global stock markets took a hit Tuesday as investors’ stock rotation and portfolio rebalancing drove markets down. While some are pointing to inflation fears, we disagree with that view since the Fed has stated that it will keep interest rates near zero until the U.S. reaches full employment.
Employment data show the economy still needs to create an additional 8.2 million jobs to reach its pre-pandemic level in February 2020. So this not the time to shut off the relief measures.
The market now will focus on the Consumer Price Index report that is due Wednesday. The latest business reports show that employers face increased pressure to increase wages to fill an extensive array of vacant positions throughout the country.
Eurozone Summary for May 11:
- Stoxx 600 closed at 436.61, down 8.78, or 1.97%.
- FTSE 100 closed at 6,947.99, down 175.69, or 2.47%
- Dax index closed at 15,119.75, up 280.66, or 1.82%.
Wall Street Summary for May 11:
- The Dow Jones Industrial Average closed at 34,269.16, down 473.66 points, or 1.36%.
- The Standard & Poor’s 500 closed at 4,152.10 down, 36.33 points, or 0.87%.
- The Nasdaq Composite Index closed at 13,389.43, down 12.43 points, or 0.09%.
- The Birling Capital Puerto Rico Stock Index closed at 2,587.28, down 39.50 points, or 1.50%.
- The U.S. Treasury 10-year note closed at 1.64%.
- The U.S. Treasury 2-year note closed at 0.16%.