All three major U.S. stock indices weakened further today as broad-based risk aversion negatively affected shares across all sectors except energy, Reuters reported. According to the agency, investors are being deterred from buying by rising government bond yields, concerns over growing debt, and a sharp rise in oil prices resulting from the war with Iran.
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Major indices continued to decline
The broader S&P 500 index shed 0.45 percent, closing at 7,585.73 points. The Dow Jones index, which comprises thirty leading industrial companies, fell 0.63 percent to 52,093.11 points. The technology-focused Nasdaq Composite index dropped 0.78 percent to 25,981.57 points. All three indices had already recorded declines during Monday’s trading session.
The technology sector is being weighed down by concerns over the future development of artificial intelligence (AI). Investors are also awaiting Wednesday’s decision by the central bank (the Fed) on interest rates, with both analysts and the market strongly leaning toward the view that central bankers will opt to raise rates.
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Dollar benefits from investors’ lower appetite for risk
The weakening of investors’ risk appetite, by contrast, works in the dollar’s favor. The U.S. currency is generally regarded as one of the safer assets. The dollar index, which expresses the dollar’s value against a basket of six major world currencies, was up 0.25 percent at 99.636 points around 9:45 p.m. CEST.
Against the Japanese yen, the dollar strengthened by 0.53 percent to 155.114 JPY. The euro lost 0.1 percent against the dollar to 1.154 USD. Against the yen, the common European currency showed a gain of 0.45 percent to 178.798 JPY.
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Source: ČTK
