Survey data from the Institution of Supply Management (ISM) report showed U.S. manufacturing activity increased in May with demand for goods remaining intact despite rising prices.
However, the positive data readings failed to change the sentiment of investors' concerns over high inflation and the recession caused by the price spike.
In addition, the market is still overshadowed by concerns over the interest rate hike by the Federal Reserve (Fed) as well as the impact of the Russia-Ukraine crisis on food and commodity prices.
Running Point Capital Los Angeles chief investment officer Michael Ashley Schulman commented that the market is plagued by extreme uncertainty and this has further clouded investor sentiment.
As a result, equities continued their bearish momentum with the MSCI worldwide stock index down 0.81% while the pan-European STOXX 600 index fell 1.04%.
On Wall Street, the Dow Jones Industrial average index was down 0.54% at 32,813.23, the S&P 500 lost 0.75% at 4,101.23 and the Nasdaq Composite was down 0.72% at 11,994.46.
The US Dollar took advantage of falling equities with the safe-haven assets up 0.786% against the Euro, which was down 0.79% at $ 1.0648 due to mounting European zone inflationary pressures.
Along with the surge, US Treasury yields also rallied on the back of a volatile trading session with the benchmark 10 -year yield hitting a 2 -week high of 2.9149% while 2 -year yields rose to a 2 -week high of 2.6517%.
A little about commodities, oil prices remained high with the decision to ban Russian oil imports even as Covid-19 restrictions in China were relaxed.
The oil market was positive with Brent crude trading up 0.18% at $ 115.81 a barrel and West Texas Intermediate (WTI) crude reaching 0.04% at $ 114.72.
Spot gold added 0.5% at $ 1,845.70 per ounce while US gold futures hit 0.28% at $ 1,847.90 per ounce despite the strengthening US dollar and US bond yields.
