ASX Falls as Wall Street Crashes on Inflation Fears

Inflation is declining in some areas of the economy, but overall it is stubbornly hot. Consumers have raised their expectations of future inflation, according to a University of Michigan survey on Friday. I was.

“Core inflation has run too high, and today’s University of Michigan figures show it’s starting to affect consumer expectations, which is roughly in line with the ‘T’ the Fed wants to avoid. “We are very pleased to announce that we have been able to provide the best investment opportunities,” said Samir Samana, Senior Global Market Strategist, Wells Fargo Investment Institute.

The S&P 500 was down 86.84 points to 3,583.07. The Dow Jones Industrial Average fell 403.89 points to 29,634.83. The Nasdaq closed at 10,321.39, down 327.76 points.

Small business stocks also plummeted. The Russell 2000 gave up his 46.01 points, or 2.7%, to close at 1,682.40.

Bond yields rose after Michigan’s report. Yields on 10-year government bonds, which affect mortgage rates, rose to 4.02% from 3.86% just before the report was released. It is trading near its highest level since 2008.

Two-year Treasury yields, which tend to track expectations of future Fed action, rose to 4.51% from 4.40% just before the report was released.

Investors also turned to the latest earnings reports for clues on how companies are dealing with inflation.

Several large banks were bright spots in the market. JPMorgan Chase rose 1.7% after reporting better-than-expected earnings and earnings on Wall Street. Wells Fargo rose 1.9% after reporting strong earnings.

UnitedHealth Group is up 0.6% after raising its profit forecast for the year.

More than 90% of stocks in the S&P 500 closed in the red. Technology stocks were the biggest weight in the index. Chip maker Nvidia fell 6.1%.

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US oil prices fell 3.9%, weighing on energy stocks. Chevron fell 3.1%.

European markets trade higher after British Prime Minister Liz Truss scrapped a planned corporate tax cut, scrapping a key piece of an economic plan that sparked weeks of market and political turmoil. finished.

Sales in U.S. retailers remained steady through August and September, and higher rent and food prices left less money available for other things, according to a government report. The report was worse than economists expected.