Stock Market Today: S&P 500 in second weekly fall amid pre-Fed jitters
Treasury Yields and Tech Sector
The S&P 500 experienced a second consecutive weekly decline due to concerns over rising Treasury yields and pre-Fed uncertainties. Tech stocks were particularly affected by the increase in yields, as investors anticipated the Federal Reserve’s stance on maintaining higher interest rates.
Market Performance
By the end of trading on Friday, the S&P 500 had fallen by 0.6%, the NASDAQ by 1%, and the Dow Jones Industrial Average by 0.5%. These losses were driven by fears of prolonged interest rate hikes by the Fed.
Inflation Data and Rate Expectations
Recent data revealing higher-than-expected inflation rates have led to diminished expectations of imminent rate cuts by the Federal Reserve. The University of Michigan’s consumer sentiment index also showed a decline, further influencing market sentiment.
Tech Sector Challenges
Heightened Treasury yields negatively impacted the tech sector, with prominent companies facing selling pressure. Adobe Systems reported a significant drop in revenue guidance, leading to a 14% decline in its stock value. Conversely, Micron Technology remained resilient amidst the broader market turbulence.
Company Performance
Ulta Beauty projected lower profits, attributing the decline to elevated costs and increased promotions. Fisker Inc, on the other hand, witnessed a rise following announcements of capital-raising efforts to enhance financial stability.
Cryptocurrency Market
Crypto stocks experienced a reversal, with companies like MicroStrategy Incorporated and Marathon Digital recovering from earlier losses. The market’s attention now shifts to Bitcoin’s upcoming halving event, expected to impact its scarcity value.
Overall, market dynamics continue to be influenced by a combination of economic indicators, company performances, and investor sentiment.
