Major US stock indices are trading in the red. wall street falls due to renewed concerns about the war in Ukraine, after unsuccessful negotiations by the Russian and Ukrainian foreign ministers, and after an inflation figure was released that reinforced that the Federal Reserve will raise rates next week.
The benchmark market index, the S&P 500 of 500 securities, it loses -1.26% to 4,223.80 points. The index dow jones, made up of the shares of 30 industrial giants, lost -1.04% to a level of 32,940.74 points. The Composite Market Index nasdaq leads the losses, with a movement of -1.95% to 12,996.60 units.
The foreign ministers of Russia and Ukraine met in Turkey, but they did not reach any progress to end the war that, in addition to human losses and displaced persons, has caused the prices of raw materials to increase due to fears in the market to an oil shortage.
The Labor Department report showed that consumer prices soared 7.9% year-on-year, their biggest advance in 40 years. Although the figures were in line with the expectations of specialists, investors fear that inflation will accelerate further due to the effects of the war in Eastern Europe.
“The bottom line is that inflation is high and there’s more to come,” said Peter Cardillo, chief market economist at Spartan Capital Securities. “I was expecting inflation to peak in the second quarter, but now that depends on oil. We may not see any relief until the end of the year.”
Fed Chairman Jerome Powell said last week that he would support a quarter-point rate hike when the US central bank meets next week and that he would be “prepared to move more aggressively” later, if inflation does not subside as fast as expected.