Stock Market Today: Wall Street Holds Up As Global Stocks Tumble, Bitcoin Falls
Shares were higher after a massive selloff in the last session, although stocks around the world fell to follow Wall Street’s performance on Wednesday.
Future for the
Dow Jones Industrial Average
showed an open of 70 points or 0.2% more, after the index lost 392 points on Wednesday to close at 36,407. The widest
was expected to start up 0.1%, while futures contracts for the
reported an opening close to the apartment. The tech-heavy index took the brunt of the market rout on Wednesday, plunging 3.3%, making it the worst three-day start to a calendar year since 2008.
Investors’ nerves were rattled on Wednesday by the minutes of the Federal Open Market Committee’s December meeting suggesting a hawkish turn for the Federal Reserve. The minutes show that the central bank’s monetary policy body is considering earlier and faster increases in interest rates and an earlier start to policy tightening thanks to the normalization of its massive balance sheet.
Overseas markets were closed ahead of the release of the minutes, so the response from traders in Europe and Asia was delayed until Thursday. that of Tokyo
which analysts say is closely correlated with the Nasdaq, fell 2.9%. The pan-European
was 1% lower.
“The December FOMC minutes last night broke the calm that started the year in financial markets,” said Jim Reid, strategist at
âThe change in sentiment has come against a backdrop of continued rising sovereign bond yields,â added Reid. “There are a few other big questions outstanding, including how many rate hikes would take place before the quantitative tightening begins and how Treasury holdings and mortgage-backed securities would be treated during the runoff.”
The Fed minutes came after a rally in recent days amid positive signs for the US economy, which was echoed by rising Treasury yields. The yield on the US 10-year benchmark note rose again on Thursday to nearly 1.73%; it started the week at 1.54%.
The bond movement exacerbated a sell-off in tech stocks, as higher yields tend to discount the present value of future cash flows; the valuations of many tech companies are based on the notion of profit in the years to come.
Jeffrey Halley, analyst at brokerage Oanda, said the recent massive selloff “is more about positioning than anything else.”
âWhen you look at what the Fed members said in the FOMC minutes, it wasn’t much different from what we already knew,â said Halley. “I would not erase the overwhelming power of fund buyers to turn the tide before the end of the week, especially if the US non-farm payroll is below 400,000.”
Later in the week, the spotlight will be on Friday’s jobs report; which includes non-farm wages, with expectations for the addition of 422,000 jobs.
In commodities markets, crude prices were up, with international benchmark Brent oil futures up 0.4% to exceed $ 81 a barrel. U.S. West Texas Intermediate crude futures similarly rose above $ 78.
Oil rebounded despite data showing a significant increase in gasoline inventories in the United States.
“This should have been bad news for oil prices, implying that Omicron weighs on mobility and consumption,” said Halley, adding that the rise in US yields and the movement of the dollar should have increased the price. pressure on the crude. “Instead, oil prices barely moved and that, despite higher OPEC + production, suggests that demand for oil indeed remains very robust.”
and other cryptocurrencies continued to feel the pressure after the main digital asset was sold after the Fed minutes were released. Bitcoin fell 9% to less than $ 42,700, according to price data from CoinDesk, with
down 13% to just over $ 3,300.
In the coming day, investors will be watching economic data, including weekly jobless claims, the ISM services index for December and the trade balance and factory orders for November.
Here are seven stocks in motion on Thursday:
(ticker: COIN) was down 1.8% in the US pre-market, after falling 6.4% on Wednesday. She and other cryptocurrency-related stocks have felt the heat of falling digital asset prices.
(MARA) decreased by 2.5% in pre-marketing with
(RIOT) sliding 2.7%; both stocks fell 12% to 13% on Wednesday.
(MSTR) fell 2.6%.
(TSLA) was down 1% pre-market after falling 5.4% on Wednesday.
Some big names in tech were on the verge of overtaking the Nasdaq.
(FB) is up 0.9% in pre-release while
(NVDA) rose 0.6%. Meta fell 3.7% on Wednesday and Nvidia fell 5.8%.
Write to Jack Denton at [email protected]