Salem Radio Network News Wednesday, August 4, 2021


As bond prices rally, U.S. stocks follow global shares lower

By Simon Jessop, Tom Westbrook and Alwyn Scott

LONDON/NEW YORK (Reuters) -U.S. treasuries were leading a broad-based bond rally on Thursday as concerns mounted about the strength of the economic recovery while inflation fears ebbed, with U.S. stocks following declines earlier across the globe. The dollar was weaker.

The burst of pessimism continued a pattern earlier in the week and comes as central bankers juggle concerns about the pace of economic recovery from the COVID-19 pandemic and its impact on inflation.

“The (bond market) bears have given up and thrown in the towel,” said Chris Scicluna, head of economic research at Daiwa Capital Markets in London.

Around 1400 GMT, the yield on 10-year Treasury notes was down 4.3 basis points to 1.278%.

The moves follow a signal from the U.S. Federal Reserve on Wednesday that it had no immediate plans to tighten monetary policy, but would begin talking about it.

A reading on Thursday on the number of Americans filing new unemployment claims provided another indication that the job market recovery from the COVID-19 pandemic continues to be choppy.

U.S. stocks were down. The Dow Jones Industrial Average was off 399.59 points, or 1.15%, to 34,282.2, while the broad S&P 500 lost 54.88 points, or 1.26%, to 4,303.25. The tech-heavy Nasdaq Composite had dropped 215.26 points, or 1.47%, to 14,449.80.

Shares in Europe were down about 2%.

The dollar index was down 0.34% at 92.33.

Spot gold prices gained $5.705, or 0.32%, to $1,809.11 an ounce.

Brent crude was last down $0.66, or 0.9%, at $72.77 a barrel. U.S. crude was last down $0.90, or 1.25%, at $71.3 per barrel.

(Additional reporting by Tom Westbrook, Yoruk Bahceli and Brenna Hughes-Neghaiwi; editing by Kirsten Donovan, Angus MacSwan, Barbara Lewis, William Maclean and Sonya Hepinstall)


Editorial Cartoons

View More »

Bob Gorrell
Thu, Jul 29, 2021