Wall Street stocks ended lower while bond yields rose, the impact of investor concerns about aggressive U.S. policy tightening as well as other central banks in curbing inflation.
New York Federal Reserve (Fed) President John Williams on Thursday suggested the U.S. Fed should consider raising interest rates by half a percentage point at its May meeting.
He added that it was indirectly seen as a further sign that policymakers would be more cautious in participating in larger rate hikes.
The statement came shortly after the European Central Bank (ECB) announced plans to end bond purchases (tapering) this quarter until the third quarter.
In addition, investors also paid attention to rate hikes by the central bank of New Zealand, the Bank of Canada (BOC), the Bank of Korea and the Monetary Authority of Singapore.
This confirms a note issued by Mona Mahajan, head of investment strategy Edward Jones who expects stocks to decline while bond yields rise.
On the Wall Street market the Dow Jones Industrial average index fell 113.36 points or 0.33% at 34,451.23, the S&P 500 index lost 54 points or 1.21% at 4,392.59 and the Nasdaq Composite was down 292.51 points or 2.14% at 13,351.08.
The STOXX 600 index was up 0.67% while the MSCI benchmark of worldwide stocks was down 0.71%.
Meanwhile, the benchmark US 10 -year yield jumped 2.8275% from 2.689% late in the session.
According to the head of global market strategy Wells Fargo Investment Institute St. Louis, Sameer Samana, the market reaction now is the reaction it should be, as long as inflation is not controlled there will be a lot of uncertainty.
The currency summary saw the dollar index up 0.524%, the Euro down 0.52% at $ 1.0828 and the Japanese Yen down 0.21% at 125.94 per dollar.
