Saturday, September 30, 2023

Stocks fall, dollar and bond yields rise after US services data

By Caroline Valetkevitch

NEW YORK, Sept 6 (Reuters) – Global equity indices fell on Wednesday as US Treasury yields rose and the dollar touched a six-month high after data from the US services sector suggested inflationary pressures were lingering.

* Data from the Supply Management Institute (ISM) showed that the non-manufacturing PMI rebounded in August, with new orders and intermediate prices rising.

* Some investors said the data could reinforce signs that interest rates could stay high for longer. The US Federal Reserve is still expected to pause rate hikes at its meeting later in the month.

* The Nasdaq Composite led Wall Street to decline and the technology sector was the biggest loser among sectors in the S&P 500 index.

* Apple shares fell 3.2% after the Wall Street Journal reported that China banned central government agency officials from using iPhones and other foreign-branded devices for work.

* The Dow Jones Industrial Average fell 212.46 points, or 0.61%, to 34,429.51; the S&P 500 fell 37 points, or 0.82%, to 4,459.83; and the Nasdaq lost 153.74 points, or 1.1%, to 13,867.21.

* The pan-European STOXX 600 lost 0.6% and the MSCI index of global equities fell 0.64%.

* According to other data, manufacturing activity in Germany, the UK and the eurozone fell while the services sector slipped into contraction territory.

* Investors are also awaiting the release of the Fed’s Beige Book later today to learn more about the state of the US economy.

* “The two biggest challenges facing the Fed right now are inflationary intervention and the risk of consumers collapsing as excess savings are depleted,” wrote Jeffrey Roach, chief economist at LPL Financial, in a note following the data .

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* The dollar index hit a fresh six-month high of 105.03 and later rose 0.2% to 104.95, while the euro fell 0.08% to $1.0711.

* 10-year government bonds rose 3.3 basis points to 4.302% from 4.268% the previous day.

* Brent crude prices fell 0.49% to $89.60 a barrel and US West Texas Intermediate (WTI) crude prices fell 0.33% to $86.40.

(Edited in Spanish by Carlos Serrano)

World Nation News Desk
World Nation News Desk
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