The markets were digesting a report that inflation may be nearing its peak. This caused the Dow Jones to reverse gains and close lower on Tuesday, as investors debated whether or not this means more trouble for America’s economy in light of current geopolitical and economic problems.
The markets were hit with a sharp drop in trading today, as investors fretted over economic uncertainty. The DJIA fell 0.26%, closing down 87 points from yesterday’s price!
The S&P 500 also experienced moderate losses (minus 0.33%) bringing its total loss so far this year up near 10%. While some big names like Amazon (AMZN) bucked that trend by rising almost 3%, other struggling companies had less success including Microsoft which lost 1%.
Nasdaq also took a hit with stocks losing nearly 1 percent of its value.
The recent climb in the Consumer Price Index, or CPI has many people concerned about future economic growth and stability of their investments as prices continue to rise at an alarming rate every quarter–in fact this past March (+1.2%) saw one of those jumps with core values reaching 8.05%.
However it was core CPI without considering food & energy which are the main concerns of investors.
Stocks are attractively valued right now due to high yield payments on Treasury bonds, but this could change as investors become concerned about inflation and interest rates rise.
Some on Wall Street are warning that it may be a while before inflation reaches its target of 2%.
In the meanwhile, the yield on the benchmark 10-year Treasury TMUBMUSD10Y, 2.732%, which on Monday reached a three-year high, dropped 5.5 basis points to 2.724%
The price of oil (WTI Oil Prices) rebounded today, with the U.S.’s benchmark CL1 closing at $100.88 per barrel after earlier rising touching +6.99%.
During the day the market has shown again an important signal of correlation with cryptocurrency.
Due to the results of the CPI, which usually bring high volatility on the market, the CEO of MicroStrategy, Michael Saylor, commented: “Inflation is worse than you think, and Bitcoin is better than you know”.
All that, while Bitcoin is trying to create its new support at $40.000.
Data collected from FintechZoom and TradingView showed that the pairs BTC/USD spiked $400 instantly as the CPI data was released.
Most traded stocks:
- AMD -2.33% Volumes 88.55M
- Apple +1.15% Volumes 78.56M
- NVIDIA -1.88% Volumes 65.75M
- Twitter Inc -5.38% Volumes 60.51M
- Microsoft -1.12% Volumes 30.64M
Top Gainers of US Stocks
- Polarityte +82.97%
- Histogen Inc +67.78%
- Lixte Bio +67.27%
- Qualigen Therapeutics Inc +52.06%
- Agile Thrpe +47.18%
Top Losers of US Stocks
- Hoth Therapeutics Inc -31.43%
- Altamira Therapeutics Ltd -31.33%
- Athersys -31.27%
- Phio Pharma -30.86%
- Kintara Theraupeutics Inc -30.71%
Company under the lens:
Shares of CarMax Inc. fell 9.54% after the used-car retailer missed fiscal fourth quarter profit estimates, offsetting a revenue beat that had been expected by investors
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