During a holiday- shortened week that should shed more light on the Federal Reserve's thinking about economic conditions, US stocks fell with recession concerns in mind.
Wall Street's major indexes had indicated a higher open, as optimism over a potential easing of Chinese tariffs by the US government helped buoy the market. According to the Wall Street Journal, President Joe Biden was considering ending some China tariffs in order to improve global supply chains.
The euro sank against the dollar as the US Dollar Index hit a 20-year high. The Fed has responded more aggressively to higher inflation than other major central banks because of the combination of flight to safety demand for the buck and yield differentials.
The US index was at 9:30 a.m.
Andrew Bailey, governor of the Bank of England, said at a news conference on Tuesday that the global economic outlook has deteriorated considerably. Financial conditions in the world have tightened.
The minutes of the Fed's meeting last month will be read by investors on Wednesday. The Fed increased interest rates by 75 basis points in order to bring down inflation.
Wage inflation will be looked at in the June jobs report from the Labor Department.
The price of oil was down. West Texas Intermediate was down at $108 per barrel. The international benchmark fell 1.6%.
The price of gold fell to $1799.50 per ounce. The 10-year yield went up.
The price of the digital currency declined to $19,510.08.
All Rights Reserved © 2024
