Wall Street suppresses inflation concerns

Wall Street suppresses inflation concerns. The US stock exchanges posted significant price gains. Technology stocks, which had recently been under pressure due to increased inflation worries, gained somewhat more and thus recovered. "Inflation concerns have subsided somewhat. There is a broader perception that inflation will be temporary," said Kleinwort Hambros' market strategist Fahad Kamal. The official view of the US Federal Reserve, which also speaks of only a temporary rise in inflation, thus prevailed. This point of view is used to argue that we can continue to do without monetary policy tightening. Because that's what the stock market fears. The Dow Jones index rose 0.5 percent to 34,394 points. The S&P 500 and the tech-heavy Nasdaq composite rose 1.0 and 1.4 percent, respectively. The Chicago Fed National Activity Index was published as the only economic date. However, the month-on-month decline reported for April did not affect the stock markets. The bond market did not provide any new insights into the inflation debate because little happened here. The yield on ten-year US Treasuries fell slightly to 1.60 percent. The gold price, which had recently reacted sensitively to concerns about inflation, hardly moved either. After recovering at the end of the week, the US dollar weakened again. The euro rose to around 1.2220 dollars after exchange rates well below the 1.22 mark on Friday. The DXY dollar index lost 0.2 percent. ING's foreign exchange analysts believe that the greenback will continue to weaken over the course of the week. The declining volatility in the foreign exchange market is encouraging investors to take greater risks. This put a strain on the supposedly safe dollar haven. The analysts expect a rotation from US assets to more promising investments outside the dollar area. In the short term, the dollar index could slide back to its most recent lows - unless the US Federal Reserve signals that it is scaling back monetary policy easing.