Stock Markets
U.S. stock indices decline after country statistics publication
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U.S. stock indices were declining on Friday after the release of data on consumer sentiment in the country, which was worse than expected, trading data show.
The Dow Jones Industrial Average declined 0.12% to 33270.89 points; the NASDAQ high-tech index was down 0.3% to 12291.87 points and the S&P 500 broad market index was down 0.14% to 4124.65 points.
On Friday, investors paid attention to macro statistics. Thus, the University of Michigan consumer sentiment index, which reflects the degree of confidence in the U.S. economy, according to preliminary estimates, in May fell to 57.7 points from April’s 63.5 points. At that point, analysts expected the index to decrease to 63 points only.
Traders also keep an eye on the situation around a possible default in the USA, which, according to the Treasury Secretary Janet Yellen, may come as early as June 1. Back in January, the U.S. Treasury Department notified Congress of the beginning of applying “extraordinary measures” in connection with the estimated achievement of the national debt ceiling of $31.381 trillion. The White House is demanding that Congress raise the ceiling unconditionally. And the House of Representatives, controlled by the Republican opposition, is tying the move to budget cuts.
“The markets expect that if a default does happen, it will be very short, maybe a few days … I don’t think anyone expects it to last very long,” said LBBW analyst Karl Healing, quoted by Agence France-Presse.
Earlier, we reported that Treasury Yields fell after U.S. inflation data.
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