Tech Sends Stocks Down With Inflation Angst Rising

Technology shares led US stocks lower as surging commodity prices stoked concern about whether inflation will derail a growth rebound in the world’s largest economy and spoil a record stock rally. The S&P 500 declined by 1.04% to 4,188.43 while Dow Jones was down 34.94 points (0.10%) to 34,742.82.

Americans Expect Record Jump in House Prices, Rent in Fed Survey

Expectations for growth in US home prices and rents over the coming year rose to the highest levels on record in the latest monthly consumer survey by the Federal Reserve Bank of New York. The median expectation for house prices was an increase of 5.5%. The series hit a low of zero a year earlier during the early weeks of the pandemic. The rise was strongest in the South and Northeast.

Biden Steps Up Aid Defense, Seeks Return of Job-hunt Requirement

President Joe Biden stepped up defense of his US$1.9 trillion pandemic-relief bill after Republicans blamed the shockingly weak gain in April employment on federal benefit payments persuading those out of work to hold off on getting a job. Biden noted that people who claim Americans won’t work even if they find a good and fair opportunity underestimate the American people.

Powell Dashboard Shows Wider Disparities as Job Growth Slows

Fed’s Chair Jerome Powell says he wants to see a recovery that reaches all corners of the labor market before the US central bank begins raising interest rates. The numbers in last week’s jobs report suggest the economy didn’t make much progress toward that goal in April. Fed announced last year an overhaul of its monetary policy strategy, a move which included changing the way it defines its congressionally mandated goal of maximum employment to be “broad-based and inclusive.”

France Would Need Partners for Second Fiscal Push, Le Maire Says

France would require investment partnerships with European countries if it decides to increase the size of its economic recovery program in September, Finance Minister Bruno Le Maire said. In comments that add to the drumbeat of calls for Europe to consider more stimulus, Le Maire said European involvement would come as part of France’s review of its existing 100 billion euro program.

England lockdown easing gets the go-ahead with majority of adults vaccinated

People in England will be able to hug close family and friends and meet indoors at pubs, restaurants and cinemas from next week, in the next phase of relaxing pandemic lockdown rules. Prime Minister Boris Johnson is pressing ahead with his “road map” for lifting lockdown, after a dramatic fall in Covid-19 cases across the UK in recent months as vaccines were rolled out.

Australian Business Sentiment ‘stunning’ as New Records Reached

Australia’s business sentiment broke new records in April in a result National Australia Bank Ltd.’s Alan Oster described as “simply stunning,” with the employment, profitability and trading indicators all surging. Business confidence climbed to 26 points from an upwardly revised 17 in March. The conditions index (measuring hiring, sales and profits) jumped to 32 points from a revised 24.

Gasoline Rally Fizzles as Colonial Sees Pipeline Back Up in Days

Gasoline’s rally dissipated after the operator of the largest US oil-products pipeline system said it’s restarting portions of the line following a cyberattack. Brent crude for July settlement rose US$0.04 to US$ 68.32 per barrel.

Source: Affin Hwang Research - 11 May 2021