Posted on 05/09/2022 10:09:08 AM PDT by Red Badger
Dow set to fall at open as markets come off another volatile week Stocks fell sharply Monday, pushing the S&P 500 to a fresh 52-week low, as the market sell-off continued and traders struggled to find their footing from last week’s big market swings.
The Dow Jones Industrial Average dropped 460 points, or 1.4%. The S&P 500 fell 2.4%, while the Nasdaq Composite lost 3.2%.
The S&P 500 traded as low as 4,003.17 on the day, as all sectors except for consumer staples dipped into the red. Amid the losses, the benchmark 10-year Treasury note yield hit its highest level since late 2018, trading well above 3%.
“This is significant repricing, this is significant dislocation and this is all being spurred and driven by Federal Reserve policy,” said Jeff Kilburg of Sanctuary Wealth. “The only way I see us finding the bottom in equities short-term, the only way I see markets healing is if the Fed has the ability with the tools in their toolbox to calm down interest rates. The 10-year note needs to go back under 3%.”
Rising rates continued to crush technology names such as Meta Platforms and Alphabet, which fell more than 4.3% and 1.7%, respectively. Amazon, Apple and Netflix all fell nearly 3%, while Tesla and Nvidia dipped more than 6%.
The combination of high rates and a potential recession as inflation surges also hit other areas of the market. Consumer stocks like Nike suffered along with industrials such as Caterpillar and Deere. Bank stocks also came under pressure with Bank of America falling more than 3%.
Boeing marked the biggest loser in the Dow, plunging more than 7% followed by energy bellwether Chevron which slipped 5.5% as U.S. oil futures continued to slide. Amgen, Walmart, Home Depot and 3M remained bright spots in the market, posting gains despite the broader sell-off.
“We expect markets to remain volatile, with risks skewed to the downside as stagflation risks continue to increase,” wrote Barclays’ Maneesh Deshpande. “While we cannot discount sharp bear market rallies, we think upside is limited.”
Wall Street is coming off a wild week, as investors weighed the prospects of rising interest rates against the potential of slower economic growth.
Last week, the Nasdaq Composite lost 1.54%, while the S&P 500 and Dow dropped 0.21% and 0.24%, respectively. It was the sixth straight losing week for the Dow, and the fifth straight for the other two major indexes.
While the cumulative moves for the week were not out of the ordinary, some of the day-to-day swings were eye-popping. The Dow had its best day since 2020 on Wednesday, but then erased all those gains and more on Thursday.
The short-lived Wednesday rally came after Federal Reserve Chair Jerome Powell said the central bank was not considering a 75-basis-point rate hike at upcoming meetings. Stocks rallied and bond yields fell following that comment but reversed course on Thursday.
Billionaire hedge fund manager David Tepper told CNBC’s Scott Wapner on Friday that Powell’s statement was an “unforced error” that contributed to market volatility.
“Our thinking is that stocks are likely to continue lower because we have not yet seen enough technical evidence to suggest a bottom process has started,” wrote JC O’Hara of MKM Partners. “Technical indicators are not oversold enough. The volume profile has shown little if any signs of real capitulation.”
On the earnings front, Palantir cratered 21% on weak revenue guidance and BioNTech gained 5.8% following a strong quarter. First-quarter earnings season is slowing down, but there are several notable reports including Walt Disney and Occidental Petroleum slated for later in the week.
In other corporate news, Rivian shares plunged nearly 15% after CNBC’s David Faber reported on Saturday that Ford is looking to sell 8 million shares in the electric vehicle maker.
32,343.30
▼ 556.07 (1.69%)
(10:11 PDT)
It is clearly the anti-energy policies of these same Commies which are driving the cost and availability of petro products.
Not a surprise, Trump predicted this almost two years ago, and he was 100% accurate as the media laughed and scoffed.
Money we wanted in our safe/fixed bucket was moved the Summer prior to the election as I also knew that Biden’s policies would crash the markets in the near term. If you have 3-5 years and even longer to 10 for your equity allocation, that will probably recover, especially when Trump runs in 2024.
They will NEVER ADMIT THAT........ EVER........................
Nasdaq January 2021 - 13500
Nasdaq now - 11700
Stolen elections have consequences.
> The Commies on the Left are again threatening oil companies with “investigations into price gouging”.... <
Don’t get too excited. They’re just following standard socialist protocol:
Step 1: Ignore the problem.
Step 2: Blame hoarders and price-gougers.
Step 3: Institute price controls and then rationing (both will fail).
Step 4: Declare a socialist paradise.
But we are free of mean tweets! Success! Our greatest achievement since 20 January 2020. s/
THD's new customer base at least in Florida are now the Puerto Ricans and the illegals who are cash-rich from all of our taxpayer-funded entitlement programs. They come into the store wheeling all their tax-credit babies wailing and screaming. All the women have nice pedicures and the men great fade haircuts and gold chains around their necks and wearing wrist watches the size of dinner plates.
Don't worry, senile Sleepy Joe will fix it. I don't know about you but I am EXTREMELY confident that senile Sleepy Joe will quickly solve the myriad of worsening problems facing the U.S.
The senile puppet Sleepy Joe is a genius ... just ask him, he'll tell you!
Bitcoin and ethereum have dropped by 7% over the last 24 hours, with bitcoin approaching $32,000 and ethereum trading near $2,400. And one expert warns bitcoin could drop even further, below $30,000 for the first time since July 2021.
Bitcoin could “potentially get a mini-bounce at $35,000, but unless we break the trend line at approximately $37,000, I’m calling for $29,000 in the coming weeks or week,” says crypto expert Wendy O in a recent TikTok video.
Cryptocurrency Prices Today: Bitcoin, Ethereum
It’s been a shaky start to the week for Bitcoin and other cryptocurrencies, largely driven by ongoing macroeconomic uncertainty. Bitcoin, the largest crypto, dipped below $36,000 Saturday and continued to nosedive throughout the weekend, hitting its lowest point in over a year Monday.
The crypto markets have been increasingly tracking the stock market, which has been trading in the red recently. Stocks fell sharply Monday, as the market sell-off continued after the Federal Reserve announced its biggest interest rate increase in over 20 years last week.
If a stock market is grossly overpriced, eventually it will go down.
I see ordinary utilities still trading at 21 times trailing earnings. This would suggest that the market has not fully adjusted to higher interest rates, and may not believe they will go as high as predicted.
anyone that “invests” in crypto based on “...crypto Wendy O in a recent TikTok video...” is an idiot that deserves to loose their money.
If you put money in the S&P 500 when Biden was elected, as of now you would in in the red. DJT predicted this with 100% accuracy. Yet it will not be mentioned by the media.
Thanks, Joe!
Good move. We moved half our investments into a safe cash position after the election. Had some concerns as the market still went up for half our holdings but are now vindicated as declines are wiping out gains. Now to wait for the market recovery when Trump runs, unless Biden destroys the world.
You're right.
Markets were hammered again today thanks to President Retard and his ineptitude 🤪
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