Tech sends stocks down with inflation angst rising
Andreea Papuc, Bloomberg News VIDEO SIGN OUT
Technology shares led U.S. stocks lower as surging commodity prices stoked concern about whether inflation will derail a growth rebound in the worldâs largest economy and spoil a record stock rally.
The tech-heavy Nasdaq 100 Index tumbled 2.6 per cent amid the growing anxiety over inflation, which can threaten longer-horizon revenues typical of the sector. Tesla and Apple were among the biggest decliners. The ARK Innovation ETF resumed its slide. The Dow Jones Industrial Average briefly topped 35,000 for the first time. The benchmark S&P 500 fell from an all-time high. Treasury yields edged higher as traders brace for a busy week of auctions.
Palladium holds near record high Spot gold to retest resistance at $1,802/oz - technicals (Recasts, adds chart, updates prices)
May 6 (Reuters) - Gold prices rose on Thursday as a pullback in the U.S. dollar and Treasury yields lifted demand for the safe-haven metal, while investors awaited U.S. non-farm payrolls data for April due later this week.
Spot gold was up 0.4% at $1,794.30 per ounce by 0650 GMT. U.S. gold futures rose 0.6% to $1,794.20 per ounce.
“The U.S. Federal Reserve is continuing to push back here, it is good for gold because it’s keeping yields lower. I think this will eventually lead to a weaker U.S. dollar,” said Stephen Innes, managing partner at SPI Asset Management.
US Fed hawks join chorus talking down inflation fears
Bloomberg
US inflation is unlikely to get out of control despite the unprecedented government spending that has been authorized in response to the COVID-19 pandemic, US Federal Reserve officials said on Wednesday.
“Our baseline view is that inflation is going to be close to our long-run objective of 2 percent, but we will be vigilant,” Fed Vice Chairman Richard Clarida told CNBC in a television interview.
“I think what the data is telling us now is there is going to be some upward movement as we reopen, but that it won’t persist over a long period of time, and that’s my view as well,” he said.