• The main US stock indices decreased as a result of today's trading

Market news

11 April 2018

The main US stock indices decreased as a result of today's trading

Major US stock indexes finished trading in negative territory, as tensions in relations between the United States and Russia over possible military actions against Syria plunged investors into risk aversion.

The focus of attention of market participants was also the protocol of the last meeting of the US Federal Reserve. The document said that during the March meeting, the leaders of the Fed signaled more confidence in achieving a target inflation rate of 2% during the year and confirmed plans for a gradual increase in rates. "In the opinion of the leaders of the Fed, the economy will grow at a rapid pace or faster than sustainable levels in the next few years." In March, all participants agreed that the outlook for the economy has improved in recent months, "the report said. And although the Fed leaders are optimistic about the prospects for economic growth, the threat of trade wars is a significant cause for concern. According to the protocols, the "overwhelming majority" of the FRS leaders consider the probability of reciprocal trade measures on the part of other countries as a risk to the US economy.

In addition, according to the US Department of Labor, the consumer price index, reflecting what Americans paid for everything from housing to dental care, fell in March by 0.1% compared to a month earlier, the first decline since May 2017. The fall is entirely due to a temporary decline in gasoline prices. Without taking energy and food into account, consumer prices rose by 0.2%, indicating a continuation of the trend, within which sustained growth is observed. The cost of housing, medical care and nutrition increased. Economists did not expect a change in overall prices during the month and a 0.2% increase in base prices. The report says that inflation after it was restrained last year, is slowly growing again, and is gradually approaching the goal of the Fed. Over the past year, consumer prices rose by 2.4%, while base prices rose by 2.1%. This was the strongest annual increase for the year.

Most components of the DOW index recorded a decline (25 out of 30). Outsider were shares of The Boeing Company (BA, -2.16%). Exxon Mobil Corporation (XOM, + 0.52%) was the leader of growth.

Almost all sectors of the S & P index finished trading in the red. The greatest decline was shown by the sector of conglomerates (-0.8%). The commodities sector grew most (+ 0.9%).

At closing:

Dow 24,189.45 -218.55 -0.90%

S&P 500 2,642.19 -14.68 -0.55%

Nasdaq 100 7,069.03 -25.28 -0.36%

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