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Investors looked ahead to more data on inflation and earnings to gauge the strength of the economy and corporate profits as the Fed continues to tighten.

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The economic impact of Federal Reserve policy, high inflation, and global disruptions from Covid-19 lockdowns in China is weighing on investors.

- Print Article - Order Reprints The Dow Is Sliding, Palantir Is Tumbling—and What Else Is Happening in the Stock Market Today

New data from China is raising fresh concerns about the global economy amid worries over high inflation, rising interest rates and supply chain disruptions.

“Investors are worried about growth slowing and the economy falling into a recession,” Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, wrote in a note. “But the extent of these disruptions shouldn’t be overplayed.” The S&P 500 is coming off its fifth consecutive weekly decline, its longest streak of losses since June 2011. Exports of Chinese steel, a barometer of global growth, are unlikely to improve much in May, according to analysts at S&P Global, a research firm. Li Keqiang, the China premier, warned this weekend that the current state of the jobs market in the country was “complicated and grave.” Stocks on Wall Street slid further on Monday as new data from China raised fresh concerns about the outlook for the global economy for investors already wary of high inflation, rising interest rates and a malfunctioning supply chain.

The S&P 500 fell 2.4%, adding to losses after closing out its longest streak of weekly declines since 2011. The Nasdaq Composite tumbled 3.3%, and the Dow Jones ...

- Saks Fifth Avenue:$20 off sitewide + free shipping - Saks Fifth Avenue coupon You may cancel your subscription at anytime by calling Customer Service. The S&P 500 fell 2.6%, adding to losses after closing out its longest streak of weekly declines since 2011.

"It's usually when no one can find anything positive on the horizon that bottoms are made," Bespoke Investment Group said.

The share of household wealth that comes from directly or indirectly held stocks hit a record 41.9%, more than double where it was 30 years ago. Tech companies ...

But it's probably getting ahead of itself in that regard." "So the sell-off we're seeing now strongly argues for a slowly growing economy, perhaps an economy that's flirting with recession. They want to slow the economy." For the central bank, inflation remains its main problem, and that has come from supply that has been unable to meet with relentless consumer demand for goods over services. Central bankers always have been attuned to market gyrations, but following the 2008 financial crisis, monetary policy has even more so relied on risk assets as a transmission mechanism. That's another reason why the Fed has to watch this." We've seen a really big correlation between equity prices and discretionary spending." "That's another element of the line between what's happening in the equity market and economic growth." That is no longer the case today." "If stock prices are down, it's much more difficult to raise equity. "The market is a prescient indicator of where the economy is headed, but overstates the case generally," Zandi said. Stocks and consumer confidence historically have been linked closely, so when stocks fall people tend to curtail spending.

Stock Market Today - 5/9: Stocks Crumble As Growth Worries Accelerate: Tech Leads Market Slump · Dow slumps 512 points, or 1.56% · Nasdaq down 407 points, or 3.35 ...

"If S&P 500 futures close below 4,100 today it will be the lowest close since May 2021 and reinforcing the downward trend." "The combination of rising US yields, a rising US dollar and falling risky asset prices is likely a self-reinforcing set of developments that it dangerous as long as correlations across assets remains so high," said Saxo Bank strategists. The tech-focused Nasdaq retreated 521 points. On the earnings front, a quiet week is expected with only 20 S&P 500 companies reporting, including Tyson Foods ( TSN) - Get Tyson Foods, Inc. Class A Report, Walt Disney ( DIS) - Get Walt Disney Company Report and Occidental Petroleum ( OXY) - Get Occidental Petroleum Corporation Report. The Commerce Department will publish April inflation data on Wednesday, with analysts expecting an easing in the headline reading from a four-decade high of 8.5% to around 8.1%, with so-called core inflation, which strips out volatile components such as food and energy, also slowing by around 50 basis points to an annual rate of 6%. Factory gate inflation data will follow on Thursday. On Wall Street, the Dow Jones Industrial Average was marked 653 points lower by the close of trading while the S&P 500, which is down 16.25% for the year, fell another 129 points. U.S. stocks slumped lower again Monday, taking the S&P 500 below the 4,000 point level for the first time in more than a year, as investors sailed into a wall of worry linked to a slowdown in China, surging inflation and an aggressive Federal Reserve in the U.S. and a worrying escalation in Russia's war on Ukraine in Europe. Safe-haven trading lifted the U.S. dollar index, which tracks the greenback against a basket of six global currencies, to a fresh 20-year high of 104.187 in overnight dealing, before easing to 103.73, while benchmark 10-year Treasury note yields hit a December 2018 high of 3.193% in the overnight session before a wave of safe-haven buying brought them back to 3.032% by the close of the session. The region-wide Stoxx 600 was marked 2.8% lower by the close of trading in in Frankfurt trading while the FTSE 100 fell another 2.2% in London. In Europe, with Russian President Vladimir Putin expected to speak at a celebration marking the end of the Second World War today, investors are worried that the conflict could escalate quickly if the so-called 'special operation' is formally upgraded to a war by Russian lawmakers. Extended crackdowns on business and travel in both Beijing and Shanghai added to the gloom, while a expected slump in China demand for oil and energy products offset a proposed G7 ban on Russian crude exports, sending WTI futures lower in overnight trading. With last Friday's sell-off on Wall Street, which extended the longest weekly losing streak in more than a decade for the S&P 500, bleeding into the Asia session, stocks were already fragile when investors were hit with data showing a sharp slowdown in China exports and a warning from Premier Li Keqiang about the country's Covid-hit jobless rate.

The Dow Jones Industrial Average was down over 1.2%, over 400 points, while the S&P 500 lost 2% and the tech-heavy Nasdaq Composite 2.6%. The wider market ...

All three major stock market indexes have fallen for the last five weeks in a row amid concerns about a slowdown in economic growth and more market downturns ahead. The selloff last Thursday was the market’s worst day since 2020, erasing gains from a day earlier—when stocks rallied on the back of a widely expected half-percentage-point rate increase from the Federal Reserve. The wider market selloff has been in large part driven by a decline in tech stocks, with nervous investors continuing to dump shares and turn to safe-haven assets. The wider market selloff continued on Monday as stocks struggled to find their footing and added to recent losses after moving lower for the last five weeks in a row.

Stock market's plunge continues on new concerns about global economy. New data from China is adding to worries over high inflation, rising interest rates and ...

In a key exception, Clearview will still be able to provide its database to U.S. banks and financial institutions under a carve-out in the Illinois law. The prospect of a citywide lockdown, the closing of schools and tough quarantine measures that included separating young children from their parents drove many families to leave. The European Union, which gets about a quarter of its crude oil imports from Russia, has also announced plans for phasing out Russian oil, but is still in talks to formalize the decision. Adding to the uncertainty are continued lockdowns in China, surging inflation, supply constraints and a spike in oil prices. Google leveraged monopoly power over app distribution for its Android smartphone software to restrict the ability of apps to charge consumers for in-app products using their own payment systems, Match Group said in its lawsuit. Though the market has been shaken by the pandemic, supply chain struggles, the war in Ukraine and more, there is a case for cautious optimism. “This is a very big change, and the markets are having trouble processing it,” said Robert Dent, senior U.S. economist for Nomura Securities. Strings of big gains and losses are more typical of recessions and the periods that follow them. Corrections are not uncommon, with the last one having started in January of this year, one of nearly a dozen since 2000. The Federal Reserve raised interest rates half a percentage point on Wednesday and markets initially rallied, with a gain of 3 percent. Strings of big gains and losses are more typical of recessions and the periods that follow them. Bear markets are similarly uncommon, with the last two having occurred in early 2020 and in the financial crisis before.

The US stock market is having its worst start to a year since 1939. | Business Insider Africa.

Phil Toews presciently reduced his exposure to stocks in February 2020 and avoided much of the downside from the COVID crash. The Federal Reserve's response to inflation is the second reason why investors are worried. The Dow Jones Industrial Average slumped 11% this year through Friday, while the tech-heavy Nasdaq bore the brunt of losses, and is down 25%.

On Monday, the Dow Jones Industrial Average is down by 360 points as investors continue their sell-off, following the Federal Reserve's direction last week.

The Nasdaq gives up 4.3 percent and the S&P 500 sinks to a new low for 2022 amid a gamut of economic tensions.

(Amazon founder Jeff Bezos owns The Washington Post.) Facebook, meanwhile, is down 40 percent and has instituted a hiring freeze, which is viewed as a type of layoff in Silicon Valley. West Texas Intermediate crude, the U.S. benchmark, fell 6.8 percent to trade around $102.30 per barrel. If the economy cools too quickly, it could fall into a recession, which is generally defined as two consecutive quarters of decline. Amazon tumbled 5 percent Monday and is down more than 35 percent on the year. Brent crude, the international oil benchmark, edged 6.5 percent lower to trade around $105 per barrel. Cboe’s VIX, known as “Wall Street’s fear gauge,” is up nearly 99.5 percent year-to-date, according to MarketWatch. Tech companies saw sales swell early in the coronavirus pandemic as consumers reached for products and services that could keep them connected while they isolated at home. Technology companies led a broad market rally shortly after the pandemic began more than two years ago, but there has been a stark reversal in recent months. At 3.6 percent, the unemployment rate remains very low, but growth has slowed markedly and the economy actually contracted in the first three months of 2022. Software company Palantir and electric-vehicle maker Rivian each lost more than 20 percent on the day. After a temporary Federal Reserve-induced boost last week carried it above $40,000, bitcoin was trading down nearly 9 percent Monday at $31,512. But now, as investors react to the prospect of a sluggish economy, big-name companies are also paying a price for high inflation and the possibility of a recession.

A closely watched gauge of expected volatility isn't offering signs of a stock-market bottom, analysts say.

The Nasdaq dropped 3.4%, leaving it down more than 25% year to date and trading at its lowest intraday level since November 2020. VIX futures also offer little comfort for those looking for a sign the lows are near, said Jonathan Krinsky, technical analyst at BTIG, in a Sunday note. “That really should have happened on Friday, with the yield on the 10-year Treasury ramping to 3.14% and WTI crude back to $110/barrel. But it did not, and so we continue to wait for an investable bottom.” Analysts have argued that indicates investors fear an even deeper selloff in coming months as the Fed prepares to continue tightening aggressively in an effort to rein in inflation. Stocks saw violent swings last week, soaring on Wednesday after the Federal Reserve delivered a widely expected rate increase of 50 basis points, only to give it all back and then some on Thursday as the Dow dropped more than 1,000 points. The VIX’s close on Friday at 30.2 left it in a “no-man’s land” between 28 and 36, marking 1- and 2-standard deviations from the long-run mean, he wrote.

U.S. equity futures edged slightly higher ahead of overnight trading Monday after stocks extended a sharp sell-off that sent all three major indexes to ...

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The Dow Jones Industrial Average was down 488 points, or 1.5%, at 32,417, as of 2:10 p.m. Eastern time, and the Nasdaq composite was 3.9% lower as tech-oriented ...

The yield on the 10-year Treasury has shot to its highest level since 2018 as inflation and expectations for Fed action rose. The Nasdaq composite's loss of roughly 25% for 2022 so far is much sharper than that for other indexes. Companies overall are reporting bigger profits for the latest quarter than expected, as is usually the case. The risk is the Fed could cause a recession if it moves too far or too quickly. The yield on the 10-year Treasury has shot to its highest level since 2018 as inflation and expectations for Fed action rose. The central bank has already pulled its key short-term interest rate off its record low of near zero, where it sat for nearly all the pandemic. It joined a worldwide swoon for markets Monday. Not only did stocks fall across Europe and much of Asia, but so did everything from old-economy crude oil to new-economy bitcoin. The Nasdaq composite's loss of roughly 25% for 2022 so far is much sharper than that for other indexes. Companies overall are reporting bigger profits for the latest quarter than expected, as is usually the case. The risk is the Fed could cause a recession if it moves too far or too quickly. The central bank has already pulled its key short-term interest rate off its record low of near zero, where it sat for nearly all the pandemic. It joined a worldwide swoon for markets Monday. Not only did stocks fall across Europe and much of Asia, but so did everything from old-economy crude oil to new-economy bitcoin.

The Bloomberg Dollar Spot Index has trumped all other assets this month, notching a 0.6% advance at a time when stocks and bonds are tumbling. Investors have ...

An afternoon rally helped the major indexes snap their short skid. But Twitter accepting Elon Musk's bid stole the spotlight.

Among their greatest qualities right now is what's sure to be a common refrain in near-term investment advice: pricing power. The Nasdaq Composite (-4.3% to 11,623) has re-entered bear-market territory, off nearly 28% from its January highs. - Palantir Technologies (PLTR) stock surrendered 21.3% after the data analytics company reported lower-than-expected first-quarter earnings per share (2 cents actual vs. Bitcoin, which fell as low as $30,375 and finished off 13.4% to $31,153, has now fallen by more than 50% from its November 2021 peak. 4 cents estimated). The company also gave current-quarter guidance below Wall Street's estimates, adding that there is "a wide range of potential upside to our guidance, including those driven by our role in responding to developing geopolitical events." Edward Moya, senior market strategist at currency data provider OANDA, notes that institutional buyers are starting to pay close attention to Bitcoin, given that many who got in during 2021 are now losing money on their investment. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.) But this was a wide selloff that went well beyond just stocks and bonds. The S&P 500 (-3.2% to 3,991 – its lowest close since March 31, 2021) needs to lose another 4% or so before entering a bear market, while the Dow Jones Industrial Average (-2.0% to 32,245) would have to retreat another 9%. Technology (-3.9%) and consumer discretionary (-4.3%) were among the usual suspects in a trading day that saw each of the 11 S&P 500 stock sectors finish in the red. The S&P 500 fell to its lowest point in more than a year Monday as last week's selloff retained all of its momentum and bled into just about anything that trades. "Interest rates are a hammer, not a scalpel – they are blunt tools designed to move slowly and with great force, rather than precisely," says Andy Kapyrin, co-chief investment officer at registered investment advisory firm RegentAtlantic. "The Fed is swinging the interest rate hammer, and the financial markets are responding to the aftershocks."

FTSE 100 and S&P 500 among those to slide as investors worry that worldwide growth is weakening.

It has lost half its value in the last six months. In New York, the S&P 500 index dropped 3.2% on Wall Street – its lowest point in a year - after its worst streak of weekly losses in more than a decade. Bitcoin fell to its lowest level since July 2021, dropping below $32,700. That reinforced worries that China’s lockdowns are having a serious economic impact. “Two of the biggest concerns are supply chains and the impact of inflation, including higher interest rates. The tech-heavy Nasdaq fell 4.29% as investors once again sold off once-hot tech stocks.

The transmission mechanism between the market and economic growth is multipronged but fairly simple. Stocks and consumer confidence historically have been ...

In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. Their cost of capital is also a lot higher, therefore they’re not going to be able to expand as aggressively,” he added. “That’s another element of the line between what’s happening in the equity market and economic growth.” That is no longer the case today.” Stocks and consumer confidence historically have been linked closely, so when stocks fall people tend to curtail spending.

Stocks pared losses and U.S. equity futures climbed, providing a little respite for global markets from concerns about an economic downturn.

Stocks pared losses and U.S. equity futures climbed, providing a little respite for global markets from concerns about an economic downturn.

As prices cool and possibly roll over for durable goods, the inflation begins to leave that segment of the economy and work its way into the services side (this ...

The bulls will stay bullish citing the pessimism of the bears and the opportunities created in the wreckage. Trillions of dollars have been wiped out of the stock market thanks to the crash of 2022 but there are thousands of stocks that have been trending down since February of 2021 – a year and change of investor pain that ought not go to waste. If we manage to avoid a 2023 recession, we’d only be forestalling the inevitable: Recessions are a normal and natural part of the economic cycle and the longer we go without one, the worse the imbalances will be when we get there. Even if home prices and stock prices fall, Americans will enjoy an increased average (or median) net worth relative to the prior trend for years to come. Free advice: Keep your leverage low, your emotions in check, do a lot less than you did during the rally, no heroics, no style points and don’t try to overthink things. In a recession, that’s not going to be the case – companies will earn less and investors will decide to pay less for those earnings. All of the companies that matter have locked in super-low rates on their debt for years to come. Takeaway: If we have a soft landing into 2023 rather than a recession, stocks are way oversold and about half the S&P 500 is way too cheap to be ignored. “Yes my revenues are up nominally but my cost of doing business is up even more and I cannot expand because there aren’t any workers in the salary range I am able to offer,” says the boss. Higher wages and higher prices are locked in a spiral where one goes up which means the other has to follow, and these two things feed off of each other until employers and consumers are both miserable. The Fed sees progress in these prices slowing (or even reversing) and softens its rhetoric. Valuation doesn’t provide you with any usable signal over the near term so, by all means, be aware of it, but don’t rely upon it to deliver something it can’t. Expensive stock markets can continue to go up in price for years.

The Federal Reserve raised its policy rate of interest by 50 basis points this past week. Read more to find out what this means for the stock market.

“When risk assets fall and fall fast enough, there's no question they're going to hurt growth,” said LaVorgna, who was chief economist for the National Economic ...

But it’s probably getting ahead of itself in that regard.” “So the sell-off we’re seeing now strongly argues for a slowly growing economy, perhaps an economy that’s flirting with recession. They want to slow the economy.” The market “is a component of financial conditions, and as the market pulls back, the assumption is it can help curtail demand, which is one of the things they want. That’s another reason why the Fed has to watch this.” Their cost of capital is also a lot higher, therefore they’re not going to be able to expand as aggressively,” he added. We’ve seen a really big correlation between equity prices and discretionary spending.” That is no longer the case today.” “That’s another element of the line between what’s happening in the equity market and economic growth.” When spending falls, sales growth slows, and share prices become less appealing when compared to future earnings. Although the stock market is not the same as the economy, the line between the two is becoming increasingly blurred. Although the stock market is not the same as the economy, the line between the two is becoming increasingly blurred.

The Federal Reserve held its last policy meeting six days ago. But it feels like it's been 60 days, given the unnerving shift in markets that's taken place ...

There’s a ton of uncertainty in the world today." What might change things and cause Bostic to re-evaluate his support for rate hikes in the near term? I think part of what we’ve seen there is a byproduct of a wide range of narratives about the prospects for the economy." - "When you have a wide range of views, you’re going to get more volatility in those markets. - It's the kind of moment when you might expect heightened chatter about the Fed relenting on its interest rate hike plans. Last week, chair Jerome Powell pretty explicitly signaled that the Fed will raise interest rates by half a percentage point at its next two meetings.

Good news is bubbling up even as the Federal Reserve raises interest rates and stocks plunge. Expectations for inflation may have hit a peak.

That might sound low, given that the consumer price index rose at an annual rate of 8.5% in March. - Print Article - Order Reprints

While stocks moved higher, concerns that drove the recent selloff—from recession fears to inflation—remain prevalent.

- Print Article - Order Reprints Dow Futures Climb, Tech Rebounds, Bitcoin Suffers—and What Else Is Happening in the Stock Market Today

“There is one potential catalyzer this week, that could eventually slow down the market selloff: U.S. inflation data due Wednesday. The consumer price index is ...

A softer inflation is the only thing that could give hope to investors,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. The early rise may give traders thought that a so-called “Turnaround Tuesday” may materialize. - Futures on the Nasdaq 100NQ00,increased 189.25 points, or 1.6% to 12383. On Monday, the Dow Jones Industrial Average DJIA, -1.99%fell 654 points, or 1.99%, to 32246, the S&P 500 SPX,declined 132 points, or 3.2%, to 3991, and the Nasdaq Composite COMP,dropped 521 points, or 4.29%, to 11623. - Futures on the S&P 500ES00,gained 40.75 points, or 1%, to 4028. - Futures on the Dow Jones Industrial AverageYM00,rose 279 points, or 0.9% to 32440.

U.S. stock futures bounced Tuesday, with investors hoping Wall Street can break its three-session losing streak.

Novavax shares sank over 20% in premarket trading after the vaccine maker missed both top and bottom line estimates for its latest quarter. EU industry chief Thierry Breton met Elon Musk in Texas on Monday, and the two signaled agreement on Europe's digital media regulation ahead of the Tesla CEO's purchase of "exactly aligned" with his thinking. Peloton on Tuesday reported a wider-than-expected quarterly loss and a steep decline in sales, as inventory piled up in warehouses and ate away at the company's cash. Pfizer will acquire all the outstanding shares of Biohaven that it doesn't already own for $148.50 each in cash. Tesla has stopped most of its production at its Shanghai plant due to problems securing parts, according to Reuters, citing an internal memo. The Nasdaq tumbled nearly 4.3% and the Dow Jones Industrial Average dropped close to 2%. The Nasdaq's bear market approached a 30% decline from its last record high in November. The S&P 500 and the Dow moved deeper into correction territory, defined by a drop of 10% or more from their most recent record highs, which were in early January. Pfizer said Tuesday it will buy migraine drug maker Biohaven Pharmaceutical for about $11.6 billion in cash. - Bitcoinrose above $31,000on Tuesday, one day after falling below that levelfor a more than 50% decline from November's all-time high. Ahead of two key inflation reports Wednesday and Thursday, President Joe Biden on Tuesday is set to deliver remarks on inflation. Peloton offered up a weak sales outlook for the current quarter, citing softer demand. The S&P 500 on Monday fell to its lowest level in more than a year. - Wall Street set to rise after S&P 500 hits lowest level in over a year

However, market downturns are not as dangerous as they may seem. With the right strategy, you can protect your money against even the worst crashes.

The key to surviving a market slump, then, is to simply hold your investments. Market downturns can be alarming for even the most experienced investors, but they are normal. But the good news is that if the market does take a turn for the worse, it's extremely likely it will bounce back. If you have a lot of savings tied up in your investments, market downturns can make it feel like you're losing a large chunk of money. The market has a decades-long history of recovering from even the worst crashes. Regardless of what the future holds for the market, there are a few reasons you don't have to worry about it.

U.S. equity futures edged slightly higher ahead of overnight trading Monday after stocks extended a sharp sell-off that sent all three major indexes to ...

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At the end of 2021, we set out our projections for the stock market in 2022: 5250 for the S&P 500 and 40000 for the Dow Jones Industrial Average.

Quantitative easing/tightening, along with the payment of interest to banks on the reserves they hold at the Fed, has never faced a test like it does today. The Fed has lifted interest rates twice (by a total of 75 bps) but has not done any quantitative tightening. If so, equity gains from our projected year-end level would be limited and it might be time then to think about a significant, albeit temporary, shift in the investment outlook. Using a 2.5% yield suggested fair value for the S&P 500 was 5,250, which became our forecast for the market at the end of 2022. When the Fed gets too tight, the bond market starts to signal that the Fed will need to reverse course, and short-term rates rise above long-term rates – an inverted yield curve. And the prime factor determining the outcome is whether the economy experiences a recession or not. This higher yield makes a world of difference in how our model sees the stock market. Recessions typically drag down profits, and with that the stock market as well. But here we are in early May and a vicious sell-off in the bond market has pushed the 10-year yield to 3.1%, substantially higher than the end of last year and above our 2.5% estimate. We use our Capitalized Profits Model to assess fair value on the stock market. During many of these past twelve years, with the US stock market well under fair value year after year, we often lifted our year end forecast during the year. At that time, given interest rates, the US stock market was still under our estimate of fair value.