Daily Updates

The selloff on Wall Street continued overnight, with the S&P 500 down 0.7% for its third consecutive daily decline. Losses were led by technology stocks, particularly chipmakers, with the Philadelphia Semiconductor Index falling 5.0%. US Treasury yields initially edged higher before declining during the US trading session, while the US dollar index was broadly steady near two-month lows.

US equities fell overnight as higher oil prices renewed concerns that the US Federal Reserve may need to raise interest rates to contain inflation. Technology stocks led the decline, with an index of major tech names down 1.3%. US Treasury yields rose on inflation concerns and higher government spending.

The S&P 500 eased from its record high on Friday as oil prices rose amid renewed strikes on commercial vessels in the Strait of Hormuz, while incoming economic data suggested that US consumers might be less resilient to the current energy price shock.

Scaling back expectations for fed funds rate hikes following the downside surprise in US PPI inflation drove the S&P 500 to fresh record highs overnight, while US Treasury yields declined.

US equities climbed overnight, with the S&P 500 finishing just short of a fresh record high, supported by a strong rise in leading chipmaker Nvidia. However, the Dow Jones closed marginally lower. US Treasury yields fell, particularly at the short end of the curve, after the US CPI report came in line with expectations.

US equities declined ahead of tonight’s US CPI release. US Treasury yields rose early before falling back after a solid US Treasury auction. The US dollar was relatively steady against other major currencies. Oil prices drifted higher as the standoff in the Middle East continued.