US stocks weakened in midweek. Inflation and uncertainty are to blame

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All major New York Stock Exchange indexes weakened during Wednesday. The Dow Jones Industrial Average fell the most, which lost over half a percent. Inflation and fear of a tough response from the US central bank has become more invidious to investors.

Inflation, restrictive monetary policy or cyber attacks can increase the systemic risks of the US financial market. This is in conformity with the possibility of new variants of the SARS-COV-2 virus. These are some of the conclusions of the U.S. Bureau of Financial Research at the federal Treasury Department.

The report finds that the factors mentioned may cause a slowdown in the United States’ economic recovery or a prolongation of some commodities in the global market. Ultimately, this may lead to a continuation of high inflation, which could require more powerful action from the Federal Reserve.

Stock markets responded to the published conclusions with declines as they weakened virtually all major New York Stock Exchange indexes. The Dow Jones Industiral Average fell the most, up 0.58 percent. Both the Nasdaq index and the main S&P 500 index also fell slightly.

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