Stocks Fall to Start Week As Market Sell-off Continues

Tiger Newspress2022-05-09

Stocks fell sharply early Monday, as U.S. rates continued to rise and traders struggled to find their footing after big market swings last week.

The Dow Jones Industrial Average dropped 430 points, or 1.5%. The S&P 500 futures fell 1.7%, while the Nasdaq Composite lost 2.1%.

The benchmark 10-year Treasury note yield hit its highest level since late 2018 on Monday. It was last trading at 3.185%.

Rising rates continued to put pressure on technology names such as Meta Platforms and Alphabet, which fell 2.5% and 2.7%, respectively. Amazon, Apple and Netflix were all down more than 2%, while Tesla and Nvidia dipped 4.4% and 3.4%, respectively.

The combination of high rates and a potential recession as inflation surges also hit other areas of the market. Consumer stocks like Nike and Home Depot suffered along with industrials such as Caterpillar and Deere in the premarket. Bank stocks also came under pressure with Bank of America falling 2%.

Meanwhile, energy bellwethers including Occidental Petroleum and Schlumberger slipped 2.8% and 2.4%, respectively, as U.S. oil futures slid more than 2% to $107.14 per barrel.

“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 and bonds rallied following that comment but reversed course on Thursday.

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Comments

  • mel18
    2022-05-10
    mel18
    Eye popping situation.Hold your breath 
  • nanehz07
    2022-05-10
    nanehz07
    Like
  • BennyTay
    2022-05-10
    BennyTay
    🥵
  • Success88
    2022-05-10
    Success88
    Thank for the drop 
  • PearlynCSY
    2022-05-10
    PearlynCSY
    Dow falls more than 600 points, S&P 500 tumbles below 4,000 to the lowest level in a year. Stocks fell sharply Monday, pushing the S&P 500 to breach the 4,000 level for the first time in more than a year as the market sell-off continued. 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%.”“We expect markets to rem
  • vic78
    2022-05-10
    vic78
    👍👍
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