Stocks fall, dollar rises as data dampens policy easing hopes

3 4 minutes read

Written by Sinad Caro and Mark Jones

New York/ London (Reuters) -The global scale of global shares in MSCI lost while the dollar rose where investors were concerned that strong US economic data on Thursday would make the federal reserve more cautious about reducing interest rates.

The revenues of the US Treasury also increased after the Ministry of Trade Economic Analysis Office said that the American economy grew faster than previously believed in the second quarter, and pumped it by a decline in imports and receiving in consumer spending. GDP in the second quarter increased by an annual rate by 3.8 % against initial reports by 3.3 %.

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Also, the new requests for capitalist commodities that were manufactured from the United States increased unexpectedly in August, but the decrease in the shipments of those goods suggested a moderate pace for growth in commercial spending on equipment in this quarter.

The Ministry of Labor said on Thursday that the number of Americans who submit new requests for unemployment subsidies decreased by 14,000 to 218,000 seasons for the week ending September 20. Reuters, the economists of Reuters, have resorted to 235,000 claims in the last week.

“If you are looking for constant fuel for stocks to move the highest and expand what we have seen during the past two years, you need to continue the momentum that was built during the summer in terms of mitigating the Federal Reserve and easily mitigating until 2026,” said Matt Tutuchi, director of the portfolio at Northwestern Manage Management.

Also on Thursday, the head of the Federal Bank in Chicago, Austan Golsby, said, although he supported the rate of interest rate last week because the labor market is cool, was not keen to do more policy dilution during inflation higher than the goal and moves in the wrong way.

But federal reserve governor Stephen Miran said in the “Sabah with Maria” program in Fox that the American economy is more likely to shock at the present time, due to high interest rates based on inflationary fears that are baseless than federal policy makers.

Mary Dali, head of the Federal Reserve Bank in San Francisco, said on Thursday that the US Central Bank needs to reduce interest rates, but it needs to move gradually because it balances the risks of its double goals of full employment and price stability.

In Wall Street, the indexes were distinguished by its third consecutive day of losses and touched the lowest level per week, after a standard closure on Monday.

Dow Jones 173.96 points, or 0.38 %, at 45,947.32, while the S&P 500 33.25 points, or 0.50 %, fell to 6604.72 and the nasdaq boat was lost 113.16 points, or 0.50 %, until it ends at 22,384.70.

The MSCI stock scale around the world decreased 6.15 points, or 0.63 %, to 973.10, which represents its third consecutive day of losses after a standard record on Monday.

Earlier, the Stoxx 600 index in Europe closed 0.66 % after touching its levels since September 5, when the MED-Tech shares were pressured after the United States opened new import investigations, while investors focused on federal reserve comments.

In government bonds, the US Treasury’s revenues rose on Thursday after stronger economic statements than expected in the second quarter, which could enhance the issue to obtain a federal reserve stop at its meeting in October.

“It seems that we are more interacting with the surprise of the bullish gross domestic product,” said Molly Brooks, the US SECURITIES strategy expert on TD Securities, about the rise in treasury revenues for two years and 10 years. “(But) I think the markets are still biased to see a slowdown in the data.”

The return on US USA’s notes increased for 10 years by 2.5 basis points to 4.172 %, from 4.147 % late on Wednesday, while bond returns for 30 years fell 0.8 basis points to 4.7497 %.

The notes return for two years, which usually moves with interest rate expectations for the Federal Reserve, increased 6.1 basis points to 3.659 %, from 3.598 % late on Wednesday.

At currencies, the dollar has gained against their peers, including the euro and the yen, on signs that the American economy has grown faster than previous expectations in the second quarter, which could restrict the reduction of the federal reserve rate.

The dollar index, which measures greenery against a basket of currencies, including yen and euros, increased by 0.66 % to 98.48.

The euro decreased by 0.64 % at $ 1.1662, while against the Japanese yen, the dollar strengthens 0.58 % to 149.76.

Against the Swiss franc, strengthening the dollar by 0.6 % after the Swiss National Bank occupied interest rates in Safir on Thursday in its first stopping since late 2023.

Oil prices abandoned previous losses of stability near Wednesday for a period of seven weeks, as economic data reduced optimism about the cuts of the rate.

American crude settled 0.02 %, or 1 percent, at $ 64.98 a barrel and Brent settled at $ 69.42 a barrel, an increase of 0.16 %, or 11 cents a day.

Safe armed gold pulled from early session losses, but was still less than the peak on Wednesday.

Gold rose 0.38 % to 3,749.94 dollars an ounce. Gold futures in the United States increased by 0.06 % to $ 3,734.20 an ounce.

At cryptocurrency, Bitcoin decreased by 3.79 % to 109,297.18 dollars after reaching its lowest level since early September.

(Sinad Caro’s reports in New York, Matt Trissy in Washington, Mark Jones in London, Stella Cheo in Sydney; edited by Kirsten Donovan, Nick Ziminski and Edmund Kalaman)

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2025-09-25 02:32:00

3 4 minutes read