US stocks and yields stay low, investors moved back to growth

  • US CPI weighs on US stocks with all three benchmarks losing ground.
  • Falling yields for benchmark US Treasuries pressured financial stocks.

US stocks have been losing ground on Tuesday as investors looked past lower-than-expected inflation data, focusing instead on economic uncertainties and growing chances of a corporate tax rate hike.

August's Consumer Price Index rose in the smallest gain since February and followed a 0.3% rise in July. The so-called core CPI increased 4.0% on a year-on-year basis after advancing 4.3% in July. The dollar index fell 0.1% to 92.498 further retreating from more than a two-week high on Monday.

The less-than-expected rise in US inflation last month is creating uncertainty as to the timing of the Federal Reserve's tapering of asset purchases. Several Fed officials have suggested that the US central bank could reduce buying debt securities by the end of the year.

US stocks bleed

The benchmarks, S&P 500, Dow Jones and the NASDAQ, initially bumped higher following the Labor Department's consumer price index report, but optimism quickly faded and they turned negative in a reminder that September is a historically rough month for stocks. Dropping yields for benchmark US Treasuries pressured financial stocks and investors moved back to growth at the expense of value.

Meanwhile, the Dow Jones Industrial Average fell 226.96 points, or 0.65%, to 34,642.67; the S&P 500  shed 16.76 points, or 0.38%, at 4,451.97 and the Nasdaq Composite is loaing 22.32 points, or 0.15%, to 15,083.26.

SP 500

Today last price 4441.9
Today Daily Change -34.15
Today Daily Change % -0.76
Today daily open 4476.05
Daily SMA20 4490.59
Daily SMA50 4431.65
Daily SMA100 4321.28
Daily SMA200 4096.6
Previous Daily High 4493.9
Previous Daily Low 4445.6
Previous Weekly High 4549.6
Previous Weekly Low 4458.3
Previous Monthly High 4545.05
Previous Monthly Low 4352.45
Daily Fibonacci 38.2% 4475.45
Daily Fibonacci 61.8% 4464.05
Daily Pivot Point S1 4449.8
Daily Pivot Point S2 4423.55
Daily Pivot Point S3 4401.5
Daily Pivot Point R1 4498.1
Daily Pivot Point R2 4520.15
Daily Pivot Point R3 4546.4



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD holds above 1.1700 but the upside is limited

The EUR/USD pair flirted with 1.1750 but was unable to retain its modest intraday gains. Now trading in the 1.1720 price zone, bears retain control ahead of the US central bank monetary policy decision.


GBP/USD falls toward 1.3650 on fresh dollar strength

GBP/USD is retreating back toward 1.3650 as the dollar reasserts itself. Fears that the crisis in China's Evergrande could turn into a more significant downturn have resumed. Central bank decisions are awaited.


Gold: Further advances depend on the Fed

A better market mood put pressure on the American currency. The US Federal Reserve will announce its monetary policy decision on Wednesday. Gold advanced for a second day in a row, but additional gains are in doubt.

Gold News

Shiba Inu bulls can't hold SHIB from dropping to $0.000006

Shiba Inu price has fallen -28% over the past four trading sessions. Bears remain in control as bulls fail to complete a breakout above $0.000008. Bulls must hold $0.000007 to prevent a drop towards $0.000006.

Read more

Fed Preview: Three ways in which Powell could down the dollar, and none is the dot-plot

No taper now, but when? That is the main question for the Fed in its all-important September meeting. The bank buys $120B worth of bonds every month and it is set to reduce the pace at some point – the first step toward raising interest rates. 

Read more