Directly at the opening, all three major indexes in New York rose, but the mood soured. At the close, the broad S&P500 index had fallen 0,4 percent and the Dow Jones industrial index had retreated 1,0 percent.
The technology-heavy Nasdaq composite index, on the other hand, was positive, 0,2 percent – a close at a new record level, according to CNBC.
During the day, statistics were released showing that inflation in the US, according to the CPI measure – the increase in consumer prices in annual terms – rose to 2,7 percent in June. This can be compared to 2,4 percent in May and with analysts' forecasts, which on average counted on 2,6 percent.
Skyler Weinand, investment manager at the financial advisory firm Regan Capital, says that President Donald Trump's unclear import tariffs are the major factor that will affect where inflation is heading.
It takes some time for tariffs to be visible in the statistics, but it is highly likely that a tariff-driven inflation increase is on the way, he says to Bloomberg.
Trump also beat his chest during the day about a new agreement with Indonesia, which is subject to 19-percent tariffs.
Nvidia drag
Index-heavy Nvidia – the world's highest-valued listed company – rose 4,0 percent.
This after the announcement that US authorities have approved the chip manufacturer to resume its sales to China of an adapted version of the so-called H20 chip.
Nvidia pulled large parts of the technology sector upwards. Five of the seven highly index-heavy technology companies that together are called "The magnificent seven" – "the magnificent seven" – rose.
Only Meta (Facebook) and the electric car company Tesla fell.
Fund manager Blackrock and bank Wells Fargo fell 5,9 and 5,5 percent, respectively, after quarterly reports. It went better for the reporting major banks JP Morgan Chase and Citigroup – plus 0,9 and 3,7 percent, respectively.
Bad circle
At the same time, the yields on US government bonds rose, regardless of maturity. For bonds with a 30-year maturity, the yield crept back up over 5 percent.
It thus touches levels that were reached during the battle in Congress over Trump's state budget – when concern rose for the large tax cuts, which are expected to increase the country's already enormous national debt by thousands of billions of dollars.
This reflects a bad circle where the US must pay a higher interest rate to get investors, which in turn further increases the costs of the national debt.
