Fed Chair Powell's bleak comments drove the Dow down over 600 points at its session lows
Investors were unable to get over Fed Chair Jerome Powell's warnings this morning, as the Dow locked in an over 500-point loss by the close. Many traders are starting to have even more doubts about the surge stocks saw last week in anticipation of an already shaky economic reopening, with Appaloosa Management founder David Tepper calling the stock market "maybe the second-most overvalued stock market I've ever seen." Meanwhile, the Nasdaq and S&P both lost over 1.5%, while the Cboe Volatility Index (VIX) notched another notable win, climbing to its highest level in almost two weeks.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJI - 23,764.78) lost 516.8 points, or 2.2% on Wednesday. Merck & Company (MRK) was the only Dow component to finish higher with a 0.9% pop, while American Express (AXP) fell to the bottom of the blue-chip index with a 6.1% dip.
The S&P 500 Index (SPX - 2,820) dropped 50.1 points for the day, or 1.8%. Meanwhile, the Nasdaq Composite (IXIC - 8,863.17) ended 139.4 points, or 1.6%, lower.
The Cboe Volatility Index (VIX - 35.28) added 2.2 points, or 6.8%.
5 Items on Our Radar Today
- Amazon (AMZN) announced it would be ending hourly wage increases and double overtime pay on May 30, after extending these benefits twice since their initial offer to employees in March. (CNBC)
- Disney (DIS) said it will suspend all new cruise departures on its Disney Cruise Line through July 27, offering guests who have currently booked cruises a credit for a future cruise, or a full refund. (Reuters)
- Royal Caribbean stock cruises lower after billion-dollar bond offering.
- Scrapped Japan plans bruise Las Vegas Sands stock.
- TWLO jumps after telehealth deal.
Data courtesy of Trade-Alert
Oil Dips Despite Unexpected Drop in U.S. Crude Supplies
Oil futures suffered a modest loss today, despite the U.S. reporting an unexpected weekly contraction in domestic crude supplies. June-dated crude dropped 49 cents, or 1.9%, to settle at $25.29 a barrel.
Gold futures stacked on a second win, as investor sentiment surrounding the current economic situation grows shakier. Gold for June delivery added $9.60, or 0.6%, to settle at $1,716.40 an ounce.