Shares fell on Thursday as market sales continued after further unsuccessful attempts to make a comeback early in the session.
The Dow Jones Industrial Average fell 500 points (1.58%), heading for the sixth straight day of losses. The S & P 500 fell 1.57%, hitting a new low this year. The Nasdaq Composite fell 1.65% as high-tech sales continued after the breath.
Early in the session, the market tried to recover as traders bought the beaten name. At some point, the Dow rose 80 points at the session’s highest, while the Nasdaq rose 1.6%.
“Even though we are in the bear market, there are very sharp rallies in the bear market,” Truist Keith Lerner said of the early market movements. “It’s a sea of red and darkness for at least the past few days, given that it’s been oversold, at least in the short term, and we’re starting to see people bite in some of these most beaten areas.”
These profits fell as the market struggled to re-select its direction and the S & P 500 was on the brink of the bear market territory.
“It’s my opinion that this is an emotionally traded market, not a rational logic,” Cerity Partners Jim Lebenthal told CNBC’s “Halftime Report” Thursday. “For the last few days, every day, this pop comes out in the morning and then drips.”
Some significantly short names led short rallies early in the day and continued to trade higher. It’s unclear what is driving the profits of Lucid, GameStop and AMC, but a hedge fund that has benefited from the plunge of this year’s overrated pandemic winners finally closed the short position with a buy. Return shares that may mean that the squeeze was taking place.
Shortcells are a tactic for a fund to sell shares borrowed from an investment bank, so you must buy and return the shares to close the transaction. A short squeeze is a rally that results from the purchase.
Lucid’s share surged 11.8% in the meantime GameStop and AMC surged by more than 30% and 20%, Before pulling back the gain. Rivian Automotive also surged 16% after reporting the latest quarterly results and Carbana. It hit a low for the first time in two years early in the session and surged above 21.%.
Randy Frederick, managing director of trading and derivatives at Schwab, said the catalysts that drive these profits are still uncertain, but investors who make heavy bets on beaten meme stocks will win big bucks. A financial research center that may have shown that it is raising ante in the hope that it will.
“I think it’s a desperate move. It’s a gambling move. It’s a lottery that expects a lot of money, and you might be lucky, but probably not,” he said.
Apple lost nearly 5%, pushing its share into the bear market territory — down 23% from its 52-week high.It came as Saudi Aramco has surpassed technology giants as the world’s most valuable company on Wednesday. Tesla and Metaplatform also got hot, down 3.3% and 1.2%, respectively.
Meanwhile, Disney’s share price fell to a two-year low, down 2.7%.Media giant Higher than expected increase in streaming subscribers reportedHowever, he warned about Covid’s impact on Asian parks.
These moves happened when traders scrutinized the latest US inflation data. Fresh producer price index data, which measures prices at the wholesale level, rose 11% year-on-year.
Equities have recently been under pressure as concerns over rising inflation and rising interest rates have reduced market sentiment. Since the beginning of the year, the S & P 500 has fallen by about 17 below the record high set in January by nearly 18%.
On Wednesday, the US government released the latest consumer price index measurements. This was up 8.3% year-on-year in April. This is higher than economists expected, close to the 40-year high of 8.5%. With this report, investors continued to sell high-risk assets such as tech stocks.
But despite gaining momentum in selling, Tom Lee of Fundstrat remains bullish on equities. “We are in a world of double-digit expected returns,” he said, if the market finds its foothold.
“This week, stock market declines are accelerating downwards and waterfalls are accelerating, but like yields and VIX, they support the decline in waterfalls,” Lee told CNBC’s Closing Bell: Overtime. It was interesting because it wasn’t there. ” “The bond market is actually pretty stable, despite the soaring consumer price index, and VIX is actually down.”
He said the market was higher at 12 events six months later, out of 16 since 1940, when the market fell 16% in four months.
The Dow has fallen by more than 500 points with a daily decline on the sixth straight, and the S & P 500 hits the new 2022 lows.
Source link The Dow has fallen by more than 500 points with a daily decline on the sixth straight, and the S & P 500 hits the new 2022 lows.