Skip to content
business bureau

business bureau

business broker

Primary Menu
  • business bureau
  • Advertise Here
  • Contact Us
  • Privacy Policy
  • Sitemap
  • Home
  • Stocks slide to lowest since March 2021, S&P closes below 4,000
  • Finance News

Stocks slide to lowest since March 2021, S&P closes below 4,000

By Dayle Venture 1 month ago

Table of Contents

  • 4:05 p.m. ET: Stocks slide to lowest close since March 2021 as selling pressure ramps: S&P 500 drops 3.2% to close below 4,000
  • 1:53 p.m. ET: Crude oil falls, energy stocks lag to give back some recent gains
  • 12:27 p.m. ET: Stocks pare some losses, but still hold sharply lower
  • 11:16 a.m. ET: Consumers’ 1-year inflation expectations decreased in April, but still held well above historical averages
  • 10:52 a.m. ET: Bitcoin falls to lowest level since July 2021, dragging down crypto-linked stocks
  • 9:30 a.m. ET: Stocks open lower, holding overnight losses
  • 7:43 a.m. ET Monday: Stock futures head for a lower open

U.S. stocks slid Monday to extend last week’s losses, as investors looked ahead to more data this week on inflation and earnings to gauge the strength of the economy and corporate profits as the Federal Reserve continues to tighten monetary policy.

[Click here to read what’s moving markets on Tuesday, May 10]

The S&P 500 dropped more than 3% and ended at its lowest level since March 2021, closing below 4,000. The Nasdaq Composite plunged by 4.3% as technology stocks came under renewed pressure. And the Dow shed more than 650 points, or 2%, to settle at 32,245.70.

Related Posts:

  • S&P 500 enters bear market, 10-year yield hits 11-year high

A combination of concerns on the geopolitical, COVID-19 and inflationary fronts have weighed heavily on risk assets in recent weeks, triggering volatility across stocks, cryptocurrencies and commodities. The CBOE Volatility Index, or VIX, jumped above 34, or well above its longer-run average of around 20.

“The path of least resistance remains lower for global equity markets to start the week. The overwhelming focus continues to be on inflation, rising interest rates, and the war in Ukraine,” Brian Price, head of investment management at Commonwealth Financial Network, wrote in an email Monday. “The combining factors of tight supply chains resulting from China’s zero COVID policy, and rising oil and food prices due to the war in Ukraine, are causing inflationary fears that are triggering a move out of risk assets. The market is void of major positive catalysts right now, so it is not surprising that we’re starting the week off under pressure.”

Investors this week are awaiting more data on the state of inflation in the U.S., which will help show how much more aggressive the Fed may need to be in order to rein in elevated price pressures. Wednesday’s Consumer Price Index (CPI) and Thursday’s Producer Price Index (PPI) for April are expected to show a deceleration in price increases, suggesting March may have been the peak in the rate of price increases across the economy.

This data will come in the wake of the Fed’s latest monetary policy decision and press conference from Federal Reserve Chair Jerome Powell, which was met with heightened volatility among risk assets. Stocks spiked and then slid, and Treasury yields marched higher following the monetary policy decision, as investors appraised whether the tools at the central bank’s disposal will be sufficient to keep inflation from becoming further entrenched while preserving economic growth.

“We knew the Fed was going to hike rates 50 basis points — it was the most telegraphed hike in the history of mankind. But the markets sold off into it. And then they finally did it and it’s like, okay, it’s done,” Eric Diton, The Wealth Alliance president and managing director, told Yahoo Finance Live on Friday. “And so you got a lot of short covering and you got a big rally.”

“That was not the real deal. The real deal was what followed … and that is that there’s a tremendous amount of uncertainty out there,” he added. “Yes, we know the Fed’s going to hike. How many times they’re going to hike? There’s a huge disparity between where rates are and where the inflation rate is. Is the Fed going to have to get up to 6% or 7%, or is inflation going to come down, they’re going to meet in the middle? That uncertainty is one of the big factors that’s driving this market to continue to come down.”

Other concerns to economic growth have also abounded recently, as Russia’s war in Ukraine and China’s renewed virus-related lockdowns stoked concerns over further persistent supply chain disruptions. Many strategists agreed that the next moves in the market would be driven by Fed’s response to inflation amid this backdrop.

“Looking forward, the path of the market will depend on the Fed’s battle against inflation,” David Kostin, Goldman Sachs chief U.S. equity strategist, wrote in a note. “In our base case, the negative impact on valuations from higher real rates will be partially offset by a narrowing yield gap. If recession risk rises, interest rates may fall but not by enough to prevent equity multiple sand share prices from falling further.”

Meanwhile, earnings season will continue this week with major names including Disney (DIS), Peloton (PTON) and Rivian Automotive (RIVN) reporting results. So far, 85% of S&P 500 components have reported actual results, according to FactSet. And as of Friday, the expected earnings growth rate for the S&P 500 was 9.1%, which, if maintained, would represent the slowest increase for the index since the fourth quarter of 2020 and fall below its average five-year growth rate of 15.0%.

—

4:05 p.m. ET: Stocks slide to lowest close since March 2021 as selling pressure ramps: S&P 500 drops 3.2% to close below 4,000

Here were the main moves in markets as of 4:05 p.m. ET:

  • S&P 500 (^GSPC): -132.10 (-3.20%) to 3,991.24

  • Dow (^DJI): -653.67 (-1.99%) to 32,245.70

  • Nasdaq (^IXIC): -521.41 (-4.29%) to 11,623.25

  • Crude (CL=F): -$7.40 (-6.74%) to $102.37 a barrel

  • Gold (GC=F): -$29.90 (-1.59%) to $1,852.90 per ounce

  • 10-year Treasury (^TNX): -4.4 bps to yield 3.0790%

—

1:53 p.m. ET: Crude oil falls, energy stocks lag to give back some recent gains

West Texas intermediate crude oil prices sank on Monday amid the broader market sell-off and reports that the European Union was poised to pare back its sanctions on Russian energy imports.

U.S. crude oil futures fell more than 6% to trade just above $103 per barrel Monday afternoon. Brent crude, the international standard, was also lower by about 6% to hover below $106 per barrel.

According to a report from Bloomberg, the EU was set to drop a proposed rule that would ban EU-controlled vessels from transporting Russian oil to other countries. Such a move would ease at least one transportation-related disruption to energy markets even amid Russia’s ongoing war in Ukraine.

The energy sector was also the worst-performing sector in the S&P 500 Monday afternoon amid the drop in oil prices. Still, however, the sector has outperformed the broader market handily for the year-to-date, rising about 38% compared to the S&P 500’s 15.5% decline. And U.S. crude oil futures have still climbed by nearly 37% for the year-to-date, and by 4.8% in the past month alone.

—

12:27 p.m. ET: Stocks pare some losses, but still hold sharply lower

Here were the main moves in markets as of 12:27 p.m. ET:

  • S&P 500 (^GSPC): -86.78 (-2.10%) to 4,036.56

  • Dow (^DJI): -410.88 (-1.25%) to 32,488.49

  • Nasdaq (^IXIC): -342.31 (-2.82%) to 11,802.35

  • Crude (CL=F): -$5.18 (-4.72%) to $104.59 a barrel

  • Gold (GC=F): -$18.60 (-0.99%) to $1,864.20 per ounce

  • 10-year Treasury (^TNX): -2.8 bps to yield 3.0950%

—

11:16 a.m. ET: Consumers’ 1-year inflation expectations decreased in April, but still held well above historical averages

Consumers’ expectations for inflation came down slightly in April compared to March while remaining at historically elevated levels, according to new data from the New York Federal Reserve on Monday.

For the next year, consumers expect inflation to rise by 6.3%, the April survey suggested. However, over a three-year time horizon, inflation expectations rose by 0.2 percentage points compared to March to reach 3.9%. Both the one-year and three-year expectation rates were 0.3 percentage points from their all-time highs.

—

10:52 a.m. ET: Bitcoin falls to lowest level since July 2021, dragging down crypto-linked stocks

The selloff across risk assets extended to cryptocurrencies, with Bitcoin prices sinking to their lowest level in nearly one year during Monday’s session.

Prices for the largest cryptocurrency by market cap dropped below $33,000, or the least since July 2021. Ethereum also sank by about 5% to trade below $2,400. The declines among some of the major tokens and alt-coins dragged down cryptocurrency-related stocks like Coinbase, which saw shares decline by 14% intraday to below $90 per share. Riot Blockchain shares sank by 15.5%, and Marathon Digital Holdings shares fell 14%.

—

9:30 a.m. ET: Stocks open lower, holding overnight losses

Here were the main moves in markets as of 9:30 a.m. ET:

  • S&P 500 (^GSPC): -60.53 (-1.47%) to 4,062.81

  • Dow (^DJI): -422.40 (-1.28%) to 32,476.97

  • Nasdaq (^IXIC): -219.38 (-1.81%) to 11,925.28

  • Crude (CL=F): -$2.17 (-1.98%) to $107.60 a barrel

  • Gold (GC=F): -$13.40 (-0.71%) to $1,869.40 per ounce

  • 10-year Treasury (^TNX): -0.3 bps to yield 3.121%

—

7:43 a.m. ET Monday: Stock futures head for a lower open

Here’s where markets were trading Monday morning:

  • S&P 500 futures (ES=F): -85 points (-2.06%) to 4,034.50

  • Dow futures (YM=F): -555 points (-1.69%) to 32,254.00

  • Nasdaq futures (NQ=F): -337 points (-2.65%) to 12,358.75

  • Crude (CL=F): -$2.65 (-2.41%) to $107.12 a barrel

  • Gold (GC=F): -$25.10 (-1.33%) to $1,857.70 per ounce

  • 10-year Treasury (^TNX): +5.3 bps to yield 3.177%

NEW YORK, NEW YORK - MAY 06: Traders work on the floor of the New York Stock Exchange (NYSE) on May 06, 2022 in New York City. Following a day that saw a drop of over 1000 points over inflation fears, the Dow Jones Industrial Average was down over 200 points in morning trading.  (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – MAY 06: Traders work on the floor of the New York Stock Exchange (NYSE) on May 06, 2022 in New York City. Following a day that saw a drop of over 1000 points over inflation fears, the Dow Jones Industrial Average was down over 200 points in morning trading. (Photo by Spencer Platt/Getty Images)

—

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn

Tags: "Taking Care Of Business, Amazon Business Credit Card, American Airlines Business Class, Att Business Login, Austin Business Journal, Best Bank For Small Business, Best Business Bank Accounts, Best Business Schools In Us, Best Business To Start, British Airways Business Class, Business Attire Men, Business Card Ideas, Business Casual Shoes For Women, Business Continuity Planning, Business Entity Search, Business Letter Template, Business Management Degree, Business Manager Facebook, Business Plan Outline, Business School Rankings, Colorado Business Search, Delaware Business Entity Search, Drop Shipping Business, Family Business Bet, Fox Business Live, Georgia Sos Business Search, Google Business Account, Harvest Small Business Finance, How To Build Business Credit, Is Saturday A Business Day, Is Sears Still In Business, Microsoft 365 Business, My Business Google, Name Generator Business, None Of Your Business, Ny Sos Business Search, Open A Business Bank Account, Pa Business Search", Plus Size Business Casual, Pnc Business Banking, Sos Business Search Ca, Sunbiz Business Search, The Business Of Being Born, Turbotax Home And Business 2020, Tx Sos Business Search, Venmo For Business, Verizon Business Plans, Virtual Address For Business, What Are Business Days, Women Business Casual

Continue Reading

Previous Stocks extend losing streak following volatile session wrought by inflation, Fed worries
Next Yellen to meet Polish prime minister at start of trip to G7 finance meeting

Recent Posts

  • A Small Business’s Guide to Marketing on Google My Business
  • From High School in Israel to Google
  • 3 Life-Changing Money Lessons I Learned From Personal Finance Authors
  • Amazon FBA Financing Guide
  • Not enough or too far? California climate plan pleases few

Archives

  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • December 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • November 2018
  • December 2016

Categories

  • business bureau
  • Business Ideas
  • Business News
  • Business Plan
  • Finance News
  • Google My Business

visit now

lands end business outfitters
Intellifluence Trusted Blogger

backlinks

textlinks

ewwlo.xyz © All rights reserved. | Magazine 7 by AF themes.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT