[Wall Street Times] New York stock market lost direction to 'fear of rebuffing'

[Wall Street Times] New York stock market lost direction to 'fear of rebuffing'

New York stocks mixed up. 

The Federal Reserve expects inflation to rise this year, signaling the possibility of a rate hike in March, as US yields continue to rise.

Wall Street analysts have pointed out that the stock market has not been able to find a direction as inflation concerns are growing. 

He also pointed out that bond yield rises may have a negative impact on corporate earnings as well as on the stock market.

The Dow Jones industrial average rose 37.32 points, or 0.1 percent, to close at 26,868.71. 

The index was up 157 points in the session and plummeted 134 points.

The Standard & Poor's 500 index fell 1.83 points, or 0.1 percent, to close at 2,821.98. 

It was up 0.4% in the session, but then dropped.

The tech-heavy Nasdaq composite index also dropped 25.62 points, or 0.4 percent, to close at 7385.86. 

Facebook, which posted a positive report, posted a record high, pushing up the index, but has since rebounded.

The 10 - year Treasury yield rose to 2.79% on the day. 

The yield on 30-year government bonds also exceeded 3% for the first time since May last year.

Randy Frederick, Charles Schwab's vice president, said, "I do not know what direction the market wants to go."

"The labor shortage may mean that inflationary pressures are showing up," he said. "We already see bond yields rising, which can obviously cause stock problems and potentially hurt corporate performance." .

The rise in inflation lowers the real value of the bond and is negative for the bond.

"The fear of rising inflation (rising inflation) can be a cause for concern," said Robert Fabric, chief investment strategist at Slate Stone Wells. 

"The more persistent the deal, the worse the inflation worries will be," he said.

Chris Weston, chief market strategist at IG, said, "The Fed has given a clear message of the March rate hike, while preventing the collapse of the investment sentiment in the coming weeks."