Live news: Russia shifts Ukraine focus to northern Donbas, says US official

A trader works on the floor at the New York Stock Exchange in New York
The swings replicate the deep uncertainty amongst traders over the outlook for development and inflation © AP

US shares dipped and Treasury bonds rose on Thursday as traders sought to navigate a tough outlook for world equities marred by inflation and indicators of slowing development.

The S&P 500 index fell 0.6 per cent, closing at its worst stage since March 2021, whereas the tech-heavy Nasdaq Composite fell 0.3 per cent. Both gauges had come below heavy promoting stress within the earlier session, with the S&P shedding 4 per cent within the worst sell-off since June 2020 and the Nasdaq tumbling 4.7 per cent.

Earlier within the day, each inventory indices had risen into constructive territory. The swings on Thursday replicate the deep uncertainty amongst traders over the outlook for development and inflation at a time when central banks, led by the US Federal Reserve, are unwinding the stimulus measures which have helped prop up the world financial system over the previous two years.

Disappointing earnings reviews in latest days from large US firms together with retailers Walmart and Target and networking group Cisco have proven how company America is scuffling with headwinds together with hovering enter prices, the struggle in Ukraine and cooling development in China.

However, many traders and Wall Street banks nonetheless anticipate the US financial system to dodge an enduring downturn in financial output.

Long-term US authorities bonds rose in worth on Thursday, reflecting the expansion jitters. The worth positive factors pushed the yield on the benchmark 10-year Treasury notice down 0.03 proportion factors to 2.85 per cent, from a excessive final week of three.2 per cent. Yields on shorter-dated Treasuries additionally dropped, reflecting bets on a extra average enhance in rates of interest. The policy-sensitive two-year yield fell by 0.05 proportion factors to 2.62 per cent.

Read extra on the day’s market strikes right here.

Additional reporting by Primrose Riordan in Hong Kong and Naomi Rovnick in London

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