World markets today: US stocks sink after March inflation data, Treasury yields jump

US stocks edged lower on Wednesday after a hotter-than-anticipated inflation data dampened hopes of the interest rates cut in June by the Federal Reserve.

As of 9:35 a.m. Eastern time, the Dow Jones Industrial Average was down 451 points, or 1.2 per cent, the S&P 500 was 1.1 per cent lower, and the Nasdaq Composite dropped 1.1 per cent.

At the opening bell, the Dow Jones Industrial Average fell 221.39 points, or 0.57 per cent, to 38,662.28. The S&P 500 was lower by 42.03 points, or 0.81 per cent, at 5,167.88, while the Nasdaq Composite dropped 202.63 points, or 1.24 per cent, to 16,104.01.

ALSO READ: US inflation beats Wall Street estimates, rises 0.4% in March

US consumer prices rose 0.4 per cent in March, translating into a 3.5 per cent annual consumer price index (CPI), the US government data showed.

US Treasury yields jumped after the inflation data was released.

The yield on the 10-year Treasury jumped to 4.47 per cent from 4.36 per cent late on Tuesday. The 2-year yield climbed to 4.93 per cent from 4.74 per cent.

The FOMC (Federal Open Market Committee) minutes of the March monetary policy are due later in the day.

U.S.-listed shares of Alibaba rose 2.8 per cent after the company’s co-founder Jack Ma expressed support for the internet giant’s restructuring efforts.

Delta Air Lines stock advanced 3.9 per cent after the carrier topped Wall Street estimates for first quarter earnings.

ALSO READ: Traders favour two Fed rate cuts in 2024 with the first expected by Sept

European equities, which had been trading higher ahead of the CPI data, slid into the red.

Britain’s FTSE 100 fell less than 0.1 per cent at 7,931.68. France’s CAC 40 lost 0.7 per cent at 7,994.02. Germany’s DAX declined 0.3 per cent at 18,023.11. The Euro Stoxx 50 edged down 0.5 per cent at 4,966.85.

In Asian stock markets, Hong Kong’s Hang Seng Index soared 1.9 per cent at 17,139.17. China’s Shanghai Composite fell 0.7 per cent at 3,027.33. Japan’s Nikkei 225 lost 0.5 per cent at 39,581.81.

Crude oil

Crude oil prices rose on Wednesday on renewed supply worries from the Middle East.

Brent crude futures were up 70 cents, or 0.8 per cent, at $90.12 per barrel at 1320 GMT, while US West Texas Intermediate (WTI) crude futures rose 69 cents, or 0.8 per cent, to $85.92.

Bullion

Gold prices slipped on Wednesday as the US dollar and Treasury yields rose after a stronger-than-expected inflation data.

Spot gold fell 0.6 per cent to $2,338.19 per ounce, as of 8:58 a.m. ET (1258 GMT). US gold futures lost 0.1 per cent to $2,360.7.

Spot silver fell 0.5 per cent to $28.01 per ounce, after hitting a near three-year high on Tuesday.