Stocks headed lower as bond yields rose. Eurozone inflation today, ADP and Powell

The stock indices headed down a bit more noticeably after a longer period, when the US bond yields, on the other hand, headed for this year’s highest values ​​(US 10-years around 4.40%), while the data from the US labor market showed a continued resilient labor market, which is another argument for that the Fed need not rush to cut rates.

With geopolitical tensions (following an attack allegedly by Israel on senior Iranian military officials), oil prices have also strengthened, which is a pro-inflationary factor. Gold prices also strengthened to new records (as a safe haven in case of a possible escalation in the Middle East)

Tesla shares fell around 5% after the company reported a nearly 9% year-over-year drop in car deliveries in the first quarter, which was below the consensus already lowered estimates. This burdened the entire segment of electric car manufacturers, and therefore also car manufacturers in general.

Indexes in Asia are also weakening overnight, one of the main news is the strongest earthquake in Taiwan in 25 years with devastating consequences. One of the most important global companies, the local chip manufacturer TSMC, has suspended production in several factories.

Today, the market will monitor inflation data in the Eurozone, other data from the US labor market (ADP non-farm payrolls), and in the evening Fed Governor Powell will give a speech.

Jan Šafránek, analyst