Wall Street slides on inflation fears, trade jitters
New York: A surge in U.S. government bond yields to their highest level in almost 7 years sent Wall Street shares sliding on Tuesday after strong retail sales data stoked inflation concerns and investors fretted about looming trade talks between the United States and China.
All three major U.S. stock indexes were down nearly 1percent, on track to post their worst daily declines in three weeks.
Investors remain preoccupied by the run-up to high-level talks between China and the United States set to commence this week in Washington. U.S. ambassador to China Terry Branstad said the two countries remain “very far apart” regarding a tariff resolution, after which White House economic adviser Larry Kudlow told Politico he supports efforts to reach an agreement.
But core retail sales - which exclude gasoline, automobiles, building materials and food services - rose at a brisker 0.4 monthly pace over March, suggesting consumer spending is accelerating after its first quarter slowdown.
The yield on 10-year U.S. Treasury notes rose to its highest level since July 2011 on the news, raising expectations for further rate hikes from the Federal Reserve.
“It really tells you that there’s no justification at all for the Federal Reserve to slow down the growth pace, which tells you that maybe this hiking thing and long term yields is real,” Chan said.
At 2:28 p.m. ET, the Dow Jones Industrial Average .DJI fell 215.3 points, or 0.86 percent, to 24,684.11, the S&P 500 .SPXlost 22.13 points, or 0.81 percent, to 2,708 and the Nasdaq Composite .IXIC dropped 73.69 points, or 0.99 percent, to 7,337.62.
The losses were broad based, with all 11 major S&P sectors in negative territory.
Smaller rival Lowe’s (LOW.N) was down 0.9 percent.
Declining issues outnumbered advancing ones on the NYSE by a 2.28-to-1 ratio; on Nasdaq, a 1.25-to-1 ratio favored decliners.
The government said today that the allocation to SIDBI out of Funds of Funds for Startups (FFS) has come down to Rs 100 crore in FY17 from Rs 500 crore in the previous fiscal.
Travel services provider Thomas Cook India today said it has inked a three-year agreement with Seoul Tourism to promote Seoul as a leisure destination for outbound travellers from India.
Karaikal Port Ltd, developed by city-based MARG Ltd, has asked Southern Railway to set up two new railway lines to boost cargo movement.
The amendments to the insolvency law which empowers home buyers to be recognised as financial creditors was introduced in the Lok Sabha today, even as opposition parties objected to certain changes in the Act alleging that these intended to "help one industry".
Shares of Tesla Inc (TSLA.O) fell more than 4 percent in trading before the bell, after a report that the electric car maker has turned to some suppliers for a refund of previously made payments in a bid to turn a profit.
The station, which was named after Lord Elphinstone, the Governor of Bombay Presidency from 1853 to 1860, has now been renamed in honour of a local deity.
Lavasa -an ultimate getaway, a city that would offer the charms of European locales, with five star comforts in a scenic part of Maharashtra has now become an abandoned town.
A second chargesheet by the ED has confirmed the trail of illegal cash Mallya transferred to his accounts across global tax havens.
Delayed payment by GMR-led DIAL, the Delhi airport operator, to the CISF guards could eventually lead to passengers paying more to fly out of the Indian Capital.
The West Bengal Police has claimed to have busted a Rs 100 crore plus job racket in the Indian Railways following a crucial arrest in the Indian Capital.