Tag Archives: Plunge

The Fed may no longer be a friend of investors, pros say, and that could be a major headwind to stocks in the near-term. “What’s dangerous about yesterday’s huge market slump is that there must be an element of doubting the ability of there to be an effective ‘Fed Put’ in this cycle following a 30-40 year period where the central bank has almost always been able to come to the market’s rescue,” Deutsche Bank strategist Jim Reid said. The Dow Jones Industrial Average plunged 1,120 points on… Source link

Shares of Amazon (AMZ) dropped after the company revealed a revenue forecast that missed analyst estimates as consumers curb online spending in the face of economic uncertainty and a return to in-person activities. The company also reported a loss on its investment in electric-vehicle maker Rivian Automotive. Amazon was the last of Big Tech names to unveil quarterly earnings this reporting season. The tech behemoth’s cloud-computing platform Amazon Web Services (AWS) was a bright spot… Source link

(Bloomberg) — Fears about the economic toll of China’s strict Covid Zero policy intensified Monday, as news that lockdowns were spreading to Beijing sent stocks, commodities and the yuan tumbling. Most Read from Bloomberg The benchmark CSI 300 Index closed nearly 5% down to the lowest level since April 2020, wiping out gains from a sweeping March pledge by officials to support the economy. The onshore yuan slumped to its weakest level in 17 months on concerns about rising capital outflows… Source link

(Bloomberg) — It’s been a painful week for traders of China’s stocks, bonds and currency as growing fears about the fallout from the nation’s Covid Zero strategy send markets tumbling. Most Read from Bloomberg The Hang Seng China Enterprises Index of big mainland companies listed in Hong Kong is among the worst-performing stock benchmarks globally this week. The offshore yuan extended declines, hitting the weakest level in a year. High-yield dollar bonds are headed for the longest… Source link

(Bloomberg) — Chinese stocks listed in Hong Kong had their worst day since the global financial crisis, as concerns over Beijing’s close relationship with Russia and renewed regulatory risks sparked panic selling. Most Read from Bloomberg The Hang Seng China Enterprises Index closed down 7.2% on Monday, the biggest drop since November 2008. The Hang Sang Tech Index tumbled 11% in its worst decline since the gauge was launched in July 2020, wiping out $2.1 trillion in value since a… Source link

All in all, the stock market is hanging tough in what has been a turbulent two weeks for humanity. The Dow Jones Industrial Average is up more than 600 points on Wednesday as of this writing. Both the S&P 500 and Nasdaq Composite are nearing gains of 2%. All three major indexes are nicely off the lows hit by the close of trading on Feb. 23, a mere hours before Russia invaded Ukraine. Every member of the FAANG [Facebook/Meta, Apple, Amazon, Netflix, Google/Alphabet] cohort has gained in the… Source link

Some reassuring words on record-setting markets into the New Year from JPMorgan strategists.  “In particular, outside of the Big 10 stocks in the U.S., equity drawdowns and multiple de-rating have been severe. Russell 3000 was down only -4% and Nasdaq Composite -7% from 12-month highs, however, the average drawdown for constituents in these indices was -28% and -38%, respectively. Some argue this price action is a harbinger of late-cycle dynamics or at least an intra-cycle 10-20% market… Source link

Oil prices dropped more than 4% before rebounding on Thursday after OPEC+ announced it would continue its supply hike of 400,000 barrels per day per month, despite the threat of Omicron variant cases. Oil analysts had been split on whether the cartel would hold steady with its output hike or pause it amid uncertainty about demand given the threat of the new variant.  West Texas Intermediate (WTI) crude (CL=F) touched $63 a barrel shortly after 9 a.m. ET. By 2 p.m. in the afternoon, future… Source link

(Bloomberg) — Elon Musk has lost $50 billion so far this week after Tesla Inc. shares plunged for the second day in a row. Most Read from Bloomberg It’s the biggest two-day decline in the history of the Bloomberg Billionaires Index, and the biggest one-day fall after Jeff Bezos’s $36 billion plunge following his divorce from MacKenzie Scott in 2019. Tesla’s rout comes amid a tumultuous few days for the automaker. It started when Musk asked his Twitter followers over the weekend whether… Source link

Goldman Sachs is taking a somewhat contrarian view on the longer-term outlook for inflation. The global banking and investment giant is expecting a core inflation rate of 4.3% in the U.S. at the end of this year, followed by a drop to 3% in June 2022 and 2.15% by December 2022. Yahoo!Finance editor Brian Sozzi points to several factors informing Goldman Sachs’ analysis: “First is an improved supply of semiconductors as manufacturers such as Intel and Taiwan Semiconductor ramp up… Source link