US Close 16 May 18: US stocks retreat from 2 month highs on inflationary concerns

 US sharemarkets fell by around 0.8% on Tuesday, pressured by fears of higher inflation and therefore higher interest rates. Also the US ambassador to China said the two countries were still "very far apart" on trade. After being down by 270 points, the Dow Jones closed lower by 193 points or 0.8%. The S&P 500 index fell by 0.7% and the Nasdaq index fell by almost 60 points or 0.8%.

 * US treasury prices fell on Tuesday on inflation concerns (yields higher). The retail sales data showed a spike in gasoline prices. And the prices paid index of the Empire State manufacturing survey rose sharply in May. US 2-year yields were up by 2 points to near 2.58% but US 10-year yields rose by 6 points to a 7-year high of 3.07%

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