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The Federal Reserve’s decision-making has been influenced by previous inflation figures.
Getty Images/AFP/Daniel Slim
Following the government’s release of a higher-than-expected inflation number on Tuesday, stocks in the United States plummeted and bond yields rose. On the business front, earnings season began with the release of results from the banking industry’s heavyweights. By three o’clock in the afternoon, the
The Dow Jones Industrial Average is a stock market index that measures how well
The Dow Jones Industrial Average was down 68 points, or less than 0.2 percent, while the S&P 500 Index was down 68 points, or less than 0.2 percent
S&P 500 Index
The S&P 500 was down 0.2 percent, and the Dow Jones Industrial Average was down
The Nasdaq Composite Index
decreased by 0.3 percent. On Monday, the Dow, S&P 500, and Nasdaq all hit new highs.
Consumer prices in the United States increased 5.4 percent from a year ago in June, exceeding estimates and marking the highest increase since 2008. According to Morgan Stanley researchers, the majority of the inflation came from price rises in services such as airlines and hotels, as well as used automobiles. In the afternoon, bond yields jumped. The 10-year Treasury yield increased to 1.43 percent from 1.35 percent earlier in the day, and the two-year yield increased to 0.26 percent from 0.23 percent. Stocks have recently sold down on lower rates, indicating reduced long-term inflation and economic growth, while rising on higher yields. However, rapid, rather than gradual, increases in yields can lead stock prices to decline, as higher yields lower the value of future profits. Stocks were heavily sold earlier this year as bond yields rose quickly. Tokyo is the most populous city in Asia.
225 Nikkei
Hong Kong’s stock index increased by 0.5 percent.
Seng Hang
grew by 1.6 percent. The
Shanghai Composite (Shanghai Composite)
The price increased by 0.5 percent. The European Union’s
600 Stoxx
Little had changed. WTI Crude oil stayed unchanged at $74.13 per barrel.
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JPMorgan Chase & Co., Inc.
The stock of JPMorgan Chase & Co. (ticker: JPM) dipped 1.5 percent after the business posted a profit of $3.78 per share, topping projections of $3.21 per share, on sales of $31.4 billion, which exceeded expectations of $29.9 billion.
Goldman Sachs is a financial services firm.
The shares of Goldman Sachs Group (GS) declined 1.1 percent after the firm posted quarterly earnings of $15.02 per share, exceeding projections of $10.24, on revenue of $15.4 billion, which was more than the $12.17 billion expected.
PepsiCo
The stock of PepsiCo (PEP) climbed 2.4 percent after the beverage giant reported earnings of $1.72 per share in the most recent quarter, topping projections of $1.53, on revenues of $19.2 billion, which were higher than expectations of $17.9 billion.
Nokia
When it publishes quarterly profits at the end of the month, the Finnish telecommunications group said it intends to adjust upwards its prior guidance for 2021. Nokia’s stock rose 11.4 percent on the New York Stock Exchange.
Boeing
(BA) fell 3.6 percent despite Wolfe Research upgrading the stock to Peer Perform from Underperform.
United Airlines Holdings is a company that owns United Airlines.
The stock of United Airlines (UAL) fell 3.6 percent after Argus downgraded it from Buy to Hold. Jacob Sonenshine can be reached at jacob.sonenshine@barrons.com./n
