Rate cuts and doubts plunge Wall Street: -1% yesterday

There was another decline on Wall Street yesterday as Treasury yields rose. Investors are now more cautious about interest rates following the latest PCE inflation data and the return to expansion of the ISM manufacturing index after 16 consecutive months of declines. The Jolts jobs report then showed that the job market remains solid. There is now a 56.1% chance of a first rate cut in June, compared with 63.8% a week ago, according to CME Group’s FedWatch tool. The Dow Jones lost 395.63 points (-1%), the S&P 500 lost 37.90 points (-0.72%), and the Nasdaq closed with a loss of 156.38 points (-0.95%). WTI oil rose $1.44, or 1.72%, to close at $85.15 a barrel on NYMEX, its highest since October, as geopolitical tensions mounted. Another record for gold, which gained $24.50, or 1.10%, to close at $2,261 an ounce. The euro rose 0.18% to $1.0763. Bitcoin fell 5.17% to $66,111.