The Nasdaq had its worst day in more than seven weeks
Big tech companies sent Wall Street indexes lower overnight, with the Nasdaq having its worst day in more than seven weeks. Investors have refocused on the potential for surging prices that could prompt central banks to start tapering off on their stimulus. Against this backdrop, the S&P 500 fell 1.04%, the Dow Jones Industrial Average dropped 0.1%, and the Nasdaq lost 2.55%.
Today in Asia, equities fell nearly across the board ahead of U.S. and Chinese consumer prices due out this week. Also, stocks were under pressure as a number of Asian countries are seeing rising coronavirus infections and deaths. As such, Tokyo’s Nikkei 225 slipped 3.08%, the Hang Seng in Hong Kong lost 2.03%, the Kospi in Seoul dropped 1.23%, while the Shanghai Composite index in China bucked the trend to gain 0.40%.
Worries about rising U.S. inflation sent European stocks lower as well, with regional indexes retreating from all-time highs on Tuesday. The pan-European STOXX 600 index fell nearly 2% in early trade and could see its biggest percentage decline in three weeks today. US 10-year Treasury yields keep trending higher so far on the session, adding to the negative tone among investors.
Meanwhile, the greenback is mixed versus major rivals despite the persisting risk aversion. EURUSD has already reversed yesterday’s losses to climb to intraday highs in the 1.2165 area in recent trading. On the data front, Germany’s May ZEW survey current situation came in at -40.1 versus -41.6 expected while expectations index improved to 84.4 versus 72.0 expected. The figures added to the upbeat tone surrounding the common currency that could retarget the 1.2200 figure if risk aversion abates in the near term. On the downside, the immediate support is now expected at 1.2125.