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Dire U.S. reports trip global marts

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Xinhua/Michael Nagle Trader works on the floor of the New York Stock Exchange as US stocks plunged amid heavy selling in the tech and financial sectors.

Share prices fell in line with sentiment abroad as stocks across the region got battered on Tuesday in a volatile start to the holiday-shortened trading week as rising bond yields, persisting rate pressures and an earnings miss by Goldman Sachs weighed on markets.

The barometer Philippine Stock Exchange index closed at 7,261.54 down by 82.42 points.

The Dow Jones Industrial Average slipped 543.34 points, or 1.5 percent, to close at 35,368.47.

The S&P 500 fell 1.8 percent to 4,577.11, and the Nasdaq Composite declined 2.6 percent to 14,506.90, hitting its lowest level in three months, Regina Capital Development Corp. managing director Luis Limlingan said.

Oil prices climbed to their highest level since 2014 on Tuesday as possible supply disruption after attacks in the Mideast Gulf added to an already tight supply outlook. Brent crude futures rose $1.02, or 1.2 percent, to $87.50 per barrel (/bbl)., while US West Texas Intermediate crude futures jumped $1.36, or 1.6 percent, to $85.18/bbl.

Fed steps on radar

Growing fears about the US Federal Reserve’s plans to fight surging inflation by ramping up interest rates hit Asian markets following a hefty sell-off on Wall Street, while oil prices extended their rally after a blast at a key pipeline.

A rise in prices since early 2021 has forced central banks around the world to start winding back the colossal financial support put in place at the start of the pandemic, with many warning that failure to act could see them run out of control.

Finance chiefs in several countries have already put the wheels in motion, but the main focus is on the Fed — the central bank of the world’s biggest economy — which has so far refrained from lifting rates, until now.

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