Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Equities, dollar gain on rising U.S. inflation

Economy May 28, 2021 05:26PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A woman holding an umbrella walks near an electric board showing Nikkei index at a brokerage in Tokyo, Japan February 15, 2021. REUTERS/Kim Kyung-Hoon 2/2

By Chibuike Oguh

NEW YORK (Reuters) -Global equity markets rose while the U.S. dollar rebounded against major currencies on Friday as new data strengthened concerns about surging inflation and more heated economic activity from pent-up demand.

A U.S. Commerce Department report showed that consumer prices accelerated 3.1% in the year to April, blowing past the Federal Reserve's 2% target and posting its largest annual gain since 1992.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, also rose at an 11.3% annualized rate in the first quarter, positioning the economy for strong growth as rising vaccinations eases COVID-19 pandemic's grip.

The dollar index of major currencies rose 0.043% to 90.053 after making gains in early morning trading. The index is down 1.34% for the month.

The benchmark U.S. 10-year Treasury yield was lower at 1.5807% from 1.61% late on Thursday, compared with 1.6310% at the end of April.

"It's another indication that we continue to see accelerating inflation remains a concern to many investors, but the markets are showing us that people are comfortable with it," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

MSCI's broadest index of world stocks rose 0.31% to 711.15. It was up 1.4% for the month. European stocks gained 0.57% to 448.98 and 2.65% in May.

Investors have watched this week as multiple Federal Reserve officials came out to calm inflation jitters ahead of the release of Friday's report and signal a possible start to talks about tapering stimulus.

On Thursday, the Fed's vice chair for supervision, Randal Quarles, joined the chorus, saying he was "fully committed" to keeping monetary policy running at full throttle while jobs recover.

All major indexes were making gains on Wall Street in the early afternoon, led by technology, healthcare, real estate, and financial stocks.

The Dow Jones Industrial Average rose 0.19%, to 34,529.45, the S&P 500 gained 0.08%, at 4,204.11 and the Nasdaq Composite added 0.09%, at 13,748.74.

For the month, the Dow added 1.94%, the benchmark S&P 500 rose 0.55%, and the Nasdaq shed 1.53%.

Overnight in Asia, Tokyo's Nikkei leapt more than 2%, ending the month 1.17% higher. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.46% on Friday and 0.3% for the month.

"The market is taking the Fed at its word for the time being, but if the numbers keep coming like this, that narrative will be challenged, as only scaling back asset purchases may not be enough," said Brian Price, head of investment management at Commonwealth Financial Network in Boston.

Gold reversed rose above the key $1,900 level on Friday, after data showed rising U.S. consumer prices in April and boosted bullion's appeal as an inflation hedge.

Spot gold rose 0.38% to $1,903.3383 per ounce, having earlier dipped as much as 0.8%. It has risen as much as 7.6% during the month.

Oil prices inched higher on Friday, with Brent holding near $70 a barrel as strong U.S. economic data and expectations of a rebound in global demand outweighed concerns about more supply from Iran once sanctions are lifted.

Brent rose 0.27%, to settle at $69.65 a barrel, and U.S. West Texas Intermediate crude dropped 0.36%, to settle $66.61 a barrel. Brent and U.S. crude are up 3.57% and 4.31% respectively in May.

Equities, dollar gain on rising U.S. inflation
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (15)
Hydrotech Paryavaran
Hydrotech Paryavaran May 30, 2021 11:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I want come America, but I don't know how can I come, please help me
Carlos Martinz
Carlos Martinz May 28, 2021 4:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
countries are now taxing bitcoin investor. I feel is not right
NUNO LOUREIRO
NUNO LOUREIRO May 28, 2021 1:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This is hilarious, all week the news and analysis saying big numbers in inflation will raise the dollar, the yields and will hurt the stock market..... Or the "analyst's" don't know what they are talking about or this is the best example of news manipulating the markets
Tyrone Jackson
Tyrone Jackson May 28, 2021 10:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fed will NEVER raise rates. Sleeping Joe is about to borrow (print) 6 TRILLION. And you think inflation is bad now? Lmao! The pundits in the media keep repeating the Fed will raise rates. If they ever do, it will be the greatest stock market bust of all time.
Ricardo Diogo
Rcd72 May 28, 2021 8:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you have to go backwards to 1980 to see such an increase in the PCE.rate hikes will not in 2022 but in September!
Carlos Escobar
SELLxTHExTOP May 28, 2021 8:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yes but we will fly until then. Just buy now
ZS Beck
ZS Beck May 28, 2021 8:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wonder, where is all this money coming from?We just spent like 4 T over the last 3 Stimulus without amy plan how to pay it back.
Tyrone Jackson
Tyrone Jackson May 28, 2021 8:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden is going to tax you to death.
George Pichurov
George Pichurov May 28, 2021 6:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
inflation hopes?
Joe Wiggs
Joe Wiggs May 28, 2021 5:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Republicans don’t want to spend 1 trillion. They surely won’t approve of 6 trillion budget.
Lakshmana Reddy
Lakshmana Reddy May 28, 2021 3:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden will keep giving free money🤣🤣
Murali Brahmandam
Murali Brahmandam May 28, 2021 3:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
First they sell bitcoin to buy gold, then they Sell Gold to buy stocks, then they Sell stocks when they have lost everything
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email