The yield on American 10-year treasury bonds has once again risen to the 3.4% range set in June, showing a strong movement. The speech by Powell, the Chair of the FED, at the Jackson Hole meeting in August revealed that they will not ease the stance on rate hikes unless historical inflation improves, which is having an impact.
Nevertheless, with expectation that inflation in the U.S. may soon peak, the stock market had been steadily rising. However, both the Dow Jones Industrial Average and the Nasdaq Composite Index quickly retreated to levels around the time of the Jackson Hole meeting.
The price of WTI crude oil futures had dropped from the $100 per barrel level to the low $80s, raising expectations that inflation may peak. However, the U.S. Consumer Price Index (CPI) for August, released on September 13th, showed an 8.3% increase year-on-year, indicating persistent inflation rather than peaking. Despite a slowdown in the growth rate for the second consecutive month due in part to a stabilization in gasoline prices, the index excluding energy and food saw an increase...