High US inflation fuels Fed hawks, weighs on appetite | MarketTalk: What’s up today? | Swissquote

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US equities rallied on Thursday, as technology stocks led gains. Meta jumped nearly 14% to the highest levels in a year.
Then, Amazon jumped more than 10% in the afterhours trading as earnings topped estimates in Q1. Revenue from both physical and online stores did better than expected. But most of the early gains were rapidly given back as executives revealed in the conference call a bit later that the revenue growth in AWS slowed.
The US futures are in the red this morning as the combination of soft US growth, higher-than-expected inflation, and mixed earnings beyond the FAANG stocks weighs on appetite.
The latter pushed the US 2-year yield higher on expectations of further tightening from the Fed. And the rebound in First Republic Bank (FRC) shares also helped cool demand in US treasuries.
The jump in US yields yesterday supports a recovery in the US dollar across the board.
The euro and the yen are softer this morning.
Eurozone countries will be revealing latest CPI data today, and Bank of Japan (BoJ) kept policy unchanged.
Crude oil recovered to $75pb, gold is under the pressure of rising US yields and Bitcoin is on a roller-coaster ride following alerts that assets of bankrupt website Mt. Gox were showing signs of life and that there is a potential for the release of 142,000 bitcoins back into the market – that’s a potential $4bn selloff.
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