O S&P 500 it fell to its lowest point in more than a year on Monday, as last week’s liquidation maintained its full momentum and bled into almost anything that was traded.
Fears of interest rates continued to be the main driver of sales. The 10-year Treasury briefly touched 3.2% today and, even after falling back to 3.06%, is hovering around the levels last seen in 2018.
“Interest rates are a hammer, not a scalpel; they are blunt tools designed to move slowly and with great force, rather than precision,” says Andy Kapyrin, co-investment director at registered investment advisory firm RegentAtlantic. “The Fed is shifting the hammer of interest rates and financial markets are responding to the aftershocks.”
Technology (-3.9%) e discretionary consumption (-4.3%) were among the usual suspects at a trading day that saw each of the 11 S&P 500 stocks end in red. But this was a big sale that went far beyond just stocks and bonuses.
US crude oil futures, for example, fell 6.1% to $ 103.09 a barrel amid continuing concerns that China’s strict blockades by COVID-19 would reduce oil prices. Of course, energy (-8.3%) was the worst performing sector on Monday, even with blue chips like Exxon Mobil (XOM, -7.9%) e Chevron (CLC, -6.7%) carrying it on the chin.
Gold futures? A bad day too, with a 1.3% discount to $ 1,858.60 an ounce as investors hoarded the U.S. dollar.
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Cryptocurrencies did not provide security either. Bitcoinwhich has fallen to $ 30,375 and finished 13.4% to $ 31,153, has now fallen more than 50% since its peak in November 2021. (Bitcoin trades 24 hours a day; prices reported here are from 16 : 00 hours)
Edward Moya, senior market strategist at currency data provider OANDA, notes that institutional buyers are starting to pay close attention to Bitcoin, as many of those who entered in 2021 are now losing money on their investment. “If the $ 30,000 level breaks, this could trigger a quick shock environment if several whales are unloaded,” he says.
O Nasdaq compound (-4.3% to 11,623) re-entered the territory of the bear market, almost 28% of its January highs. O S&P 500 (-3.2% to 3,991 – its lowest close since March 31, 2021) should lose another 4% more or less before entering a bear market, while the Dow Jones Industrial Average (-2.0% to 32,245) would have to fall another 9%.
Other news on today’s stock market:
- The one with a small lid Russell 2000 it sank 4.2% to 1,762.
- Palantir Technologies (PLTR) fell 21.3% after the data analytics firm reported lower earnings per share than expected in the first quarter (2 real cents versus an estimated 4 cents). The company also provided guidance for the current quarter below Wall Street estimates, adding that there is “a wide range of potential for our guidance, including those driven by our role in responding to the development of geopolitical events.” An important note of PLTR’s financial results was its first quarter revenue of $ 446.4 million, up 31% year-on-year and above average.
- Rivian Automotive (RIVN) fell 20.9% after sources told CNBC Ford Motor (F, -5.9%) will sell 8 million RIVN shares after the electric vehicle manufacturer’s inside information lockout period expired on Sunday. The news also spread Amazon.com (AMZN, -5.2%), which owns approximately 158.4 million shares of RIVN, according to S&P Global Market Intelligence. “We are not surprised by the news, especially after the two companies finalized a partnership to jointly develop an electric vehicle last November and when Ford began delivering the F-150 Lightning, a direct competitor to Rivian’s R1T van,” he said. CFRA Research analyst. Garrett Nelson, who maintained a retention rating in the electric vehicle stock.
The strongest parts of a weak market
Green ink was in short supply on Monday, but relative success was a relative success.
“This collapse should continue the rotation in defensive dividend stocks,” says Jay Hatfield, investment director of ETF Infrastructure Capital Management.
Consumer products, which were only slightly lower on Monday, and utility companies, the second-best with a 0.8% decline, are among the beneficiaries, Hatfield says.
Among its greatest qualities at the moment is what will surely be a common saying on short-term investment advice: the power of pricing. In short, as inflation continues to run smoothly, those companies that are best able to drive most of these prices to consumers should do better, and even if your average American can spend a few more months without taking a vacation or buying a new one. par. Nikes, they are unable to take away much of the basic necessities such as food and electricity.
Keep reading as we examine a number of stocks with exceptional pricing power, as well as highlighting several names that, while good companies in their own right, will have an uphill battle as long as inflation remains hot.