On August 23, 2024, U.S. markets faced downward pressure due to rising inflation concerns, evidenced by a surge in the ISM services index which indicated an increase in prices from 58.2% to 64.4% in December. This marked the first reading above 60% since January, spooking investors and causing the 10-year Treasury yield to reach 4.699%, its highest since late April. Consequently, the S&P 500 fell by 1.11%, the Dow Jones by 0.42%, and the Nasdaq slumped 1.89%, led by a significant drop in tech stocks such as Nvidia. Meanwhile, in Europe, the Stoxx 600 index saw a modest increase of 0.32%.
In corporate news, Meta announced it would discontinue its third-party fact-checking program to enhance free expression, sparking internal criticism. Also, UK long-term borrowing costs spiked following a disappointing debt auction, raising fears of potential stagflation. In the tech industry, Anthropic, an AI startup, is reportedly negotiating to raise up to $2 billion at a valuation of $60 billion. Overall, investors are navigating a complex landscape where inflation risks and economic growth dynamics remain critical concerns.
