Early bounce in stocks evaporated on Wall Street ahead of the interest rate decision tomorrow. Cryptocurrency exchange operator Coinbase announced to cut staff by 18% and bitcoin dropped to $22, 000. Markets in Asia and Europe traded lower on inflation worries.
Asian markets were on the backfoot after global economic slowdown worries dominated market sentiment across the region. Nikkei plunged as much as 2.2% before trimming losses. Markets in China rebounded. India's wholesale inflation accelerated in May. The Australian market index dropped 3.6%.
Market indexes plunged more than 2% for the third day in a row as investors face a busy week ahead with decisions from several central banks. The S&P 500 index fell back in bear territory on the U.S. rate hike worries on Wednesday.
Asian market plunged after the U.S. inflation accelerated and fueling worries of faster rate hikes. The yen dropped to a 23-year low on widening rate gap between Japan and the U.S. Indexes in China declined after Beijing reimposed stricter controls in several parts of the city.
Selling intensified for the second day in a row after the inflation report highlighted deeper problems beyond food and energy prices. For the week, the Nasdaq dropped 7% and the S&P 500 fell 6%. European markets extended similar losses as white-hot inflation envelops the globe.
European markets plunged after the U.S. inflation report confirmed the global inflation surge. Inflation pressures are not likely to subside in the near future as central banks around the world are lagging in response and have limited options in taming the 4-decade high food and energy price surge.
Traders resumed selling on Wall Street and the S&P 500 and the Nasdaq indexes extended weekly declines of near 6.0%. The latest reading on inflation showed deepening and broadening of inflation while policymakers run out of options and rates drop more in negative territory.
Stocks came under heavy selling pressure in the final hour of trading ahead of the release of key inflation data on Friday. The closely watched consumer price index report will provide fresh insights into the strength of inflationary pressures across the economy.
Stocks on Wall Street declined after the U.S. Treasury yields pushed higher and crude oil prices showed a positive bias. The European Central Bank said it plans to lift rates and lowered its economic growth outlook for the current and next two years.
Stock market indexes dropped 1% after bond yield rose and crude oil prices continued to advance. Mortgage application volume dropped to the lowest in 22 years.
The eurozone economic growth in the first quarter was revised higher and German industrial production rose less than expected 0.7%. Credit Suisse indicated a loss in second quarter. Inditext earnings jumped 80%.
U.S. stocks looked down after the World Bank and the OECD lowered global growth estimates. The U.S. Treasury yields rebounded and crude oil inched higher above $120 a barrel.
U.S. indexes closed higher in volatile trading and managed to shrug off the latest earnings warning from Target. Retailers and tech stocks rebounded, bond yields fell, and crude oil advanced.
U.S. stocks turned lower after Target issued an earnings alert and cited inventory challenges. Discount retailers have been struggling with inventory and supply chain issues leading to higher than expected markdown and order cancellations.
