Stocks fall, U.S. dollar rises as investors assess U.S. interest rate outlook

Global stock indexes fell on Tuesday and the dollar rose against the euro as investors weighed U.S. interest rate prospects following news of rising house prices.

U.S. Treasury yields traded lower in a narrow range.

Investors on Tuesday reacted to China’s decision to cut benchmark lending rates (LPR) for the first time in 10 months. In addition to Beijing’s moves to boost the country’s slow recovery, the People’s Bank of China also cut medium-term interest rates on Thursday.

Floor construction of American single-family house plans

The month of May was high

And permits for future construction are also up, the report found.

After raising rates by 5 percentage points starting in March 2022, the Federal Reserve took a breather this month to assess the effects of its actions. However, with inflation still high, rate hikes may resume next month.

The Dow Jones Industrial Average led the afternoon decline in the major U.S. stock indexes, and all 11 major S&P 500 sectors were lower.

Dow

306.37 points or 0.89% down,

Unpleasant

33,992.75

; S&P 500

lost 33.82 points or 0.77%.

On that day

4,375.77

and the Nasdaq Composite

96.68 points or 0.71% down,

Unpleasant

13,592.89

.

US markets were closed on Monday for a national holiday.

Pan-European STOXX 600 Index

0.51 lost

% and MSCI’s volume of stocks worldwide

0.75 lost

%

Opposite one

A basket of six

Among major currencies, the dollar rose 0.22% today, while the euro

decreased by 0.14%

$

1.0907

.

Investors were also interested in Fed Chairman Jerome Powell, who will testify before the U.S. House of Representatives’ Finance Committee on Wednesday.

“If Mr. Powell is confident that the Fed is not raising rates to control inflation, that could help stabilize the dollar after last week’s big slide,” said Joe Manimbo, senior market analyst at Canavera.

The Australian dollar fell after minutes of the central bank’s latest meeting showed it was considering leaving interest rates unchanged.

Among Treasuries, the yield on the 10-year note fell 6 basis points (bps) to 3.709%.

Oil prices fell sharply on China’s mixed demand outlook.

U.S. crude oil has fallen recently

decreased by 1.81%

$

70.48

A barrel and Brent were $

75.32

,

Decreased by 1.01%

On that day.

Spot gold

0.7 decreased

% to $

1,935.79

An ounce.