NEW YORK, New York – U.S. and global stocks tumbled on Wednesday as fears of inflation rebounding prompting increased interest rates kept buyers at bay.
The ISM (Institute for Supply Management) said Wednesday its non-manufacturing Purchasing Managers’ Index rose to 54.5 in August, well ahead of an anticipated 52.5.
“The stronger-than-expected ISM services data shows that investors are still not very skilled at reading the post-pandemic tea leaves,” Carol Schleif, chief investment officer at BMO’s family office in Minneapolis told Reuters Wednesday.
He was not alone in his views.
“Growth stocks have been pricing in the idea that inflation has been well anchored and that the Fed’s going to cut. If that idea no longer holds they’re going to be vulnerable,” Patrick Kaser, portfolio manager from Brandywine Global. was quoted by Reuters as saying Wednesday.
- The S&P 500 finished at 4,465.48, down 31.35 points or 0.70 percent.
- The Dow Jones Industrial Average dropped 198.78 points or 0.57 percent, closing at 34,443.19.
- The NASDAQ Composite recorded a more significant decline, losing 148.48 points or 1.06 percent to end at 13,872.47.
- The Russell 2000 index saw a slight decline of 6.17 points or 0.33 percent Wednesday, closing at 1,874.28.
- The NYSE COMPOSITE (DJ) saw a decrease of 50.95 points or 0.32 percent, closing at 15,891.53.
- The NYSE AMEX COMPOSITE INDEX dropped 40.82 points or 0.90 percent, closing at 4,483.86.
- The CBOE Volatility Index, often referred to as the “VIX,” rose by 0.44 points or 3.14 percent, closing at 14.45.
U.S. Dollar Creeps up on ISM Report, Prospects for Higher Inflation, Interest Rates
The U.S. dollar was in demand Wednesday following the ISM report, however gains were minimal. Treasury yields shot up as investors weighed up the prospect of higher interest rates.
Here are the closing rates for key currency pairs:
EUR/USD (Euro/US Dollar)
- The Euro to US Dollar exchange rate closed at 1.0723, marking a marginal decrease of 0.03 percent or a loss of 0.0003.
USD/JPY (US Dollar/Japanese Yen)
- The US Dollar to Japanese Yen exchange rate closed at 147.60, experiencing a slight decrease of 0.03 percent or a loss of 0.047.
USD/CAD (US Dollar/Canadian Dollar)
- The US Dollar to Canadian Dollar exchange rate closed at 1.3634, with no significant change, showing a negligible movement.
GBP/USD (British Pound/US Dollar)
- The British Pound to US Dollar exchange rate closed at 1.2499, registering a decrease of 0.06 percent or a loss of 0.000.
USD/CHF (US Dollar/Swiss Franc)
- The US Dollar to Swiss Franc exchange rate closed at 0.89113, with no significant change.
AUD/USD (Australian Dollar/US Dollar)
- The Australian Dollar to US Dollar exchange rate closed at 0.6377, showing a slight decrease of 0.03 percent or a loss of 0.00021.
NZD/USD (New Zealand Dollar/US Dollar)
- The New Zealand Dollar to US Dollar exchange rate closed at 0.5864, marking a decrease of 0.14 percent.
Global Stock Markets End Mostly Lower on Wednesday
CANADA
In Canada:
- The S&P/TSX Composite index experienced a decrease of 186.80 points or 0.92 percent, closing at 20,226.96.
UNITED KINGDOM
The FTSE 100 in London closed at 7,426.14, experiencing a slight decline of 11.79 points or 0.16 percent.
EUROPE
- The ESTX 50 PR.EUR closed at 4,238.26 Wednesday, marking a decrease of 30.90 points or 0.72 percent.
- The Euronext 100 Index dropped 9.44 points or 0.70 percent, closing at 1,341.24.
- Belgium’s BEL 20 experienced a positive trend, gaining 20.98 points or 0.57 percent to close at 3,673.29.
Over in Germany:
- The DAX PERFORMANCE-INDEX closed at 15,741.37, marking a decrease of 30.34 points or 0.19 percent.
In France:
- The CAC 40 saw a decrease on Wednesday of 60.63 points or 0.84 percent, closing at 7,194.09.
RUSSIA
In Moscow:
- Russia’s MOEX Russia Index closed at 2,222.51, with a slight decrease of 4.14 points or 0.19 percent.
ASIA
In Japan:
- The Nikkei 225 ended positively, gaining 204.26 points or 0.62 percent to reach 33,241.02.
In Hong Kong:
- The HANG SENG INDEX experienced a minimal drop of 6.93 points or 0.04 percent, closing at 18,449.98.
In China:
- The SSE Composite Index closed at 3,158.08 Wednesday, with a small increase of 3.71 points or 0.12 percent.
- The Shenzhen Index saw a slight decline of 25.50 points or 0.24 percent, closing at 10,515.21.
In Singapore:
- Singapore’s STI Index closed at 3,222.88, down 3.95 points or 0.12 percent.
In India:
- The S&P BSE SENSEX closed at 65,880.52, with a modest gain of 100.27 points or 0.15 percent.
- India’s NIFTY 50 closed at 19,611.05, with a gain of 36.15 points or 0.18 percent.In Indonesia:
In Indonesia:
- IDX COMPOSITE in Indonesia experienced a small increase Wednesday, gaining 4.25 points or 0.06 percent to close at 6,995.95.
In Malaysia:
- Malaysia’s FTSE Bursa Malaysia KLCI closed at 1,460.62, with a positive trend of 5.79 points or 0.40 percent.
In South Korea:
- The KOSPI Composite Index dropped 18.84 points or 0.73 percent, closing at 2,563.34.
In Taiwan:
- Taiwan’s TSEC weighted index closed at 16,738.16, down 53.45 points or 0.32 percent.
OCEANIA
In Australia:
- S&P/ASX 200 closed at 7,257.10 Wednesday, down 57.20 points or 0.78 percent.
- Australia’s ALL ORDINARIES index saw a decline of 55.20 points or 0.73 percent, closing at 7,461.60.
In New Zealand:
- New Zealand’s S&P/NZX 50 INDEX GROSS saw a slight decline of 9.59 points or 0.08 percent, closing at 11,427.66.
LATIN AMERICA
In Brazil:
- Brazil’s IBOVESPA index saw a significant decrease, losing 1,345.95 points or 1.15 percent to close at 115,985.34.
In Mexico:
- Mexico’s IPC MEXICO experienced a minor decrease Wednesday, dropping 16.23 points or 0.03 percent to close at 52,916.27.
In Chile:
- The S&P/CLX IPSA index in Chile remained unchanged, closing at 5,058.88.
AFRICA
In Johannesburg, the Top 40 USD Net TRI Index closed at 3,839.30, down 27.95 points or 0.72 percent.
MIDDLE EAST
In Israel:
- Israel’s TA-125 index saw a modest gain of 0.53 points or 0.03 percent, closing at 1,866.24.
In Egypt:
- Egypt’s EGX 30 Price Return Index closed positively Wednesday, gaining 180.10 points or 0.95 percent to reach 19,224.50.
