Investors largely brushed off a strong producer price index
The Dow shed 614 points on Wednesday, marking its worst single-day percentage drop in over a month. The S&P 500 and Nasdaq also settled lower, with the latter snapping a seven-day win streak as traders brushed off a producer price index (PPI) for December that hinted at easing inflation. A holiday sales miss, profit taking, and tech layoffs also contributed to today's pessimism. As a result, the Cboe Volatility Index (VIX) edged higher to settle back above 20.
Continue reading for more on today's market, including:
- Airline stock hit a fresh high on upbeat forecast.
- 2 tech giants became the latest to announce layoffs.
- Plus, what boosted MRNA; Party City goes bankrupt; and keep tabs on this software name.
5 Things to Know Today
- Executives at the World Economic Forum expressed optimism about the economy, but warned the U.S could default on its debt for the first time in modern history. (CNBC)
- Spotify Technology (SPOT) is urging the European Commission to take “swift and decisive action” against Apple (AAPL) due to the latter's anticompetitive practices. (MarketWatch)
- Upbeat vaccine trial data boosted Moderna stock.
- Shorts piled on Party City stock after bankruptcy filing.
- How Okta stock could soon run down overhead levels.
Fed Comments Weigh on Oil, Gold Prices
Oil prices pivoted lower on Wednesday, settling back below the $80 region after earlier surging to their highest level since December. Comments from St. Louis Fed President James Bullard, who indicated the Federal Reserve needs to quickly hike interest rates above 5%, weighed. February-dated crude dropped 70 cents, or 0.9%, to settle at $79.48 per barrel.
Gold prices had a volatile session as well, marking another eight-month high before finishing in the red. Bullard's remarked weighed on the yellow metal as well, as investors worried about how higher interest rates might impact the economy. February-dated gold shed $2.90 or 0.2%, to settle at $1,907 per ounce.