Wall Street indexes closed lower Monday as inflation fears drove investors away from technology-heavy growth stocks in favour of cyclicals, which stand to benefit most as the economy reopens. The TSX was also in the red, losing 111 points, with technology and cannabis stocks taking the biggest hit. By Monday’s close, the Nasdaq was down 350, while S&P and Dow shed 44 and 35, respectively.
The technology selloff spread to other sectors Tuesday as concerns about inflation mounted, dragging U.S. indexes down for a second consecutive day this week. The Dow shed nearly 475 points as investors pulled back bets on many of the financials, industrials and energy stocks, while the TSX dropped 88 points, with both energy and real estate losing more than 1%.
The losses were even steeper Wednesday as the Dow and S&P registered their deepest three-day declines in nearly seven months, after a sharp uptick in consumer prices heightened worries that interest rates could be set to climb faster than anticipated. According to U.S. Labor Department data released Wednesday, the consumer-price index jumped 4.2% in April from a year before, the most in any 12-month period since 2008. The news sent U.S. Treasury yields up by 7 basis points to 1.693%, the largest one-day yield gain since March. The materials sector was hit especially hard, as gold prices fell in response to a surging U.S. dollar.
source https://richarddri.ca/n-a-markets-decline-as-inflation-fears-mount/
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