Mixed Stock Results With Rising Bond Yields

This week’s financial world results showed a mixture of upward and downward movement. As such, the Dow Jones Industrial Average displayed a steady but certain upward movement. Meanwhile, the Nasdaq Composite fell amid higher inflation rates pushing bond yields upwards. For slightly more specific results, the DOW jumped 69 points, translating to 0.2%. Nasdaq showed a steeper fall than that, dropping about 0.3%

Another significant occurrence is the 10-year Treasury yield movement. Namely, after it closed on 1.63% on Thursday, it showed a jump on Friday, rising to 1.67%. China’s PPI also had a similar result but steeper. The Chinese measure jumped from 3.5% to 4.4%.

Because of those results, tech stocks suffered, showing negative performance overall. That’s because the yields reduce the value of money moving forward towards the future. That also devalues growth companies, many of which belong to the tech world. As such, their desired profits get postponed further down the line.

In Asia, the situation with their indexes is slightly more severe, with two showing downward movements. Namely, the China CSI 300 and Hang Seng both demonstrated downward movements of about 1%. For consumers, March showed an increase in prices of about 0.4%, mostly because of fuel hikes. However, factory prices are also on the rise, nearing a two-year high.

In Europe, the situation seems to be a bit better as stocks remain mostly stable. Namely, the Stoxx Europe 600 index stayed flat at a level near a new record high. Investors hesitate to show optimism, though, as they worry that China’s inflation might spread worldwide. That would force central banks to take action, increasing global interest rates. Still, the positive COVID-19 rebound shows some room for optimism.

The Fed chair, Jerome Powell, indicated that the rise in inflation isn’t anything we should worry about. He claims it was expected and will be temporary.