MMR

Wall Street Responds Poorly to Potentially Hawkish Fed

Fed Governor Brainard's comments spooked the tech sector today

Deputy Editor
Apr 5, 2022 at 4:27 PM
facebook X logo linkedin


Stocks fell sharply today after comments from U.S. Federal Reserve Governor Lael Brainard. Considered one of the more dovish Fed members, Brainard hinted that the central bank could soon shrink its balance sheet "rapidly" in response to rising inflation. Investors are monitoring the Russia/Ukraine crisis as well, while recession concerns picked up after Deutsche Bank's forecast. As the 10-Year treasury yield jumped to its highest level since May 2019, the tech-heavy Nasdaq was hit the hardest, logging its worst single-day session since March 7.

Meanwhile, in economic data out today, the Institute for Supply Management (ISM) services index rose 1.8 points to 58.3% in March, breaking a three-month streak of declines and signaling faster economic expansion. Plus, after hitting an all-time high the previous month, the U.S. trade deficit inched 0.1% lower in February. 

Continue reading for more on today's market, including:

  • Schaeffer's Senior Market Strategist Bryan Sapp discusses April seasonality
  • Cruise stock climbs following best booking week ever. 
  • Plus, 3 stocks enjoying fresh analyst attention.

The Dow Jones Average (DJI - 34,641.18) fell 280.7 points, or 0.8% for the day. UnitedHealth Group (UNH) led the gainers with a 1.3% rise, while Boeing (BA) dropped to the bottom of the index with a 4.3% loss. 

The S&P 500 Index (SPX - 4,525.12) lost 57.5 points, or 1.3%, for the day, while the Nasdaq Composite (IXIC - 14,532.55) shed 328.4 points, or 2.3% in today's session.

Lastly, the Cboe Market Volatility Index (VIX - 21.03) added 2.5 points, or 13.3% for the day.

Summary 0405

NYSE Nasdaq 0405

5 Things To Know Today

  1. The Biden administration is expected to extend the payment pause for student debt through the month of August. (CNBC)
  2. According to the latest Forbes billionaires list, there are fewer billionaires than last year, as well as a new person in the number 1 spot. (MarketWatch)
  3. Goldman Sachs added this clean energy name to "America's Buy List." 
  4. Solar stock gets overdue bull note
  5. Underperforming Carvana stock hit with downgrade. 

Earnings 0405

UVOL 0405

Oil, Gold Move Lower

Oil prices settled lower today, though still above the psychologically-significant $100 level. May-dated crude fell $1.32, or 1.3%, to settle at $101.96 a barrel. 

Gold futures moved lower today, as investors weighed the commodity amid rising bond yields and lingering inflation concerns. June-dated gold fell $6.50, or 0.3%, to settle at $1,927.50 an ounce. 

 

Follow us on X, Follow us on Twitter

 

Nvidia and its powerful chips are the face of artificial intelligence.

But while everyone’s patting Nvidia on the back for record earnings…

It’s quietly moved on to the next phase of AI it plans to conquer…

Nvidia recently unveiled essential blueprints for this crucial $1 trillion pivot.

Click here now and find out about the three companies Nvidia absolutely needs to succeed in this vital new AI frontier.
 (ad)