Home Cryptocurrency Stock Slide Continues As Bitcoin Wobbles, Growth Concerns Weigh

Stock Slide Continues As Bitcoin Wobbles, Growth Concerns Weigh

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Stock Market Today-4/8:Stocks Extend Gains Despite Fed, War Risks



Updated at 8:52AM ET

U.S. stock futures extended losses on Thursday that could drag the Dow down for a sixth straight session, as investors continued to sell risky assets in the global economy amid renewed fears that central bank tightening and soaring inflation will dent global growth prospects.

Big tech stocks led Wall Street losses yesterday, with Apple (AAPL) – Get Apple Inc. Report It fell another 5.25% and entered bear market territory as faster-than-expected core inflation data for April revived heavy bets on Fed rate hikes and hammered risk assets.

Bitcoin’s continued slump has only added to the jitters, with the price of the world’s largest cryptocurrency falling again to a one-year low of $26.750.90 in overnight trade amid the collapse of the TerraUSD stablecoin.

Tech isn’t the only concern in the market right now, however, as the CBOE’s main volatility gauge, the VIX, recovered to levels last seen in early March, rising 5.9% to 34.49 in early trade, securing another session of wild swings on Wall Street on Thursday.

Slowing growth in Europe, Britain’s contraction in March and the prospect of a recession in the coming months have fueled fears among investors, pushing them into safe-haven assets such as U.S. Treasuries, which have pushed yields higher. As low as 2.844 percent of the benchmark 10-year note — up nearly 26 basis points from levels earlier in the week.

Still, even as bets on a 75 basis point rate hike have shrunk sharply due to the recent market rout, CME Group’s FedWatch tool still puts a 5.1% chance of a June meeting.

Elsewhere, the U.S. dollar index, which tracks the greenback against a basket of global peers, rose 0.8 percent to a fresh 20-year high of 104.673, another example of “risk-off” sentiment in world equities.

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A surge in the dollar put downward pressure on oil prices, which rebounded strongly yesterday after the Energy Department said inventories in the Strategic Petroleum Reserve fell a record 7 million barrels last week to a May 2001 low of 543 million barrels.

WTI crude futures for June delivery were last down $1.60 at $104.11 a barrel, while July Brent crude futures fell $1.83 to $105.70.

On Wall Street, futures contracts tied to the Dow Jones Industrial Average showed a 135-point loss at the open after factory inflation data at 8:30 a.m. ET came in slightly below expectations, while futures contracts tied to the S&P 500 fell 17.44% for the year , priced to move down 28 pips

Nasdaq-linked futures are facing a 170-point slump at the open, extending the tech-focused benchmark’s year-to-date decline to around 28%.

Dow Jones component Walt Disney (DIS) – Get The Walt Disney Company Report Shares fell 5% after the media and entertainment giant warned that soaring inflation and supply chain disruptions could dent near-term profits, leaving its Disney+ streaming service with better-than-expected subscribers.

Beyond Meat (BYND) – Beyond Meat Company Report The plant-based food maker posted a bigger-than-expected first-quarter loss, sending its shares tumbling 24% as marketing and new product launch costs offset impressive volume growth.

Apple shares fell 1.4 percent, extending losses to around 20.8 percent from an all-time high on Jan. 3, as its main Taiwanese assembler Foxconn warned that chip shortages and slumping demand would hit revenue in the current quarter.

Foxconn, the world’s largest electronics maker, officially known as Hon Hai Precision Industry Co Ltd, posted a 5 percent rise in profit in the March quarter to about $985 billion, but said revenue in the June quarter and through the end of the year were down due to supply. Chain disruptions, Covid-19 lockdowns in China and slowing smartphone demand will largely stall.

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