US stocks tumbled on Thursday following the release of mixed economic data as markets look to Federal Reserve Chair Jerome Powell on whether he will raise interest rates.
The release of economic data showed that consumer spending rose only 0.2%, slowing for January compared to Decembers 0.4% rise. Jobless claims dropped by 10,000 to 210,000, while inflation was at 1.5%. Personal income gained 0.4%.
The S&P index sank 0.36% or nine points to 2,701.32 while the Dow composite fell 0.53% or 133 points to 24,878.24 and the NASDAQ Composite fell 0.51% or 37 points to 7,231.35.
U.S. President, Donald Trump’s comments that he was going to impose a 25% tariff on imports of steel saw United States Steel Corporation gain 5.17 percent.
Investors Concerned of Future Interest Rate Hikes
Investors are concerned that the Federal Reserve Chair Jerome Powell will raise interest rates from three to four following his comments that he thought that the economy had strengthened.
In Europe Stocks Fell
Germany’s DAX index falling 1.81% or 224 points
The Stoxx Europe 600 index fell 1.26 percent, down 43 points
France CAC40 dropped 1.18 percent or 62 points
U.K’s FTSE 100 fell 1.06 percent or 76 points
Spain’s IBEX 35 fell 1.15 percent, down 113 points
The MSCI Asia Pacific Index fell 1 percent
• The U.S. dollar index which measures the greenback against a basket of six major currencies, gained 0.21% to 90.80.
• The euro fell 0.3 percent to $1.22, the weakest in five weeks.
• The British pound lost 1 percent to $1.3765, the lowest in almost seven weeks.
• The Japanese yen gained 0.6 percent to 106.69 per dollar.
• Gold futures dropped 0.82 percent to $1,307.20 a troy ounce
• Crude oil futures fell 1.54 percent to $60.69 a barrel
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