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MARKET OVERVIEW. The New York Stock Exchange ended a volatile and choppy session on Thursday, concerned about inflation and geopolitical developments surrounding the war in Ukraine.
Consult market news (again).
Stock market indices at close of trading
In Toronto, the S&P/TSX ended up 138.20 points (-0.70%) at 19,699.05 points.
In New York, the S&P500 lost 5.10 points (-0.13%) to 3,930.08 points.
that Nasdaq ended up with 6.73 points (+0.06%) at 11,370.96 points.
that DOW closed 103.81 points (-0.33%) at 31,730.30 points.
that loons fell $0.0031 (-0.4063%) to hit $0.7667.
that oil returned $1.09 (+1.03%) to $106.80.
gold fell $31.70 (-1.71%) to $1,822.00.
that Bitcoin down $359.14 (-1.23%) to $28,727.32.
“Markets remained jittery after another inflation report that showed a further rise in wholesale prices,” Schwab analysts said.
“Additionally, expectations of an aggressive Fed amid slowing growth were major contributors to volatility, along with lockdowns in China, the war in Ukraine and the strong dollar.”
The market was still weighed down by US April inflation data released the day before, which beat economists’ expectations of 8.3% yoy, with price inflation still near a 40-year high.
Following on Thursday was April’s PPI, which eased somewhat, to +0.5% for the month, but is still up 11% over a year.
“It shows that there are still supply chain issues that will impact the system, meaning consumer prices will fall at a much slower rate than expected,” said Christopher Vecchio, an analyst at DailyFX.
“It also means that the Fed will adopt a rapid pace of rate hikes,” he continued.
In addition to inflation, another geopolitical factor negatively impacted market sentiment, according to Spartan Capital Securities’ Peter Cardillo on Thursday: Finland’s desire to join NATO “immediately.”
This desire was immediately thwarted by Moscow, which promised Helsinki a “military-technical” response.
“The market is concerned about the spread of the war; Finland is talking about joining NATO, and if that happens, Vladimir Putin has made it clear that he will fight back,” Cardillo said.
“If Russia took revenge, we could find ourselves at war, the United States or other European countries. This is a negative factor for the market,” he added.
The analyst said that despite inflation fears, 10-year Treasury bill yields, which move in the opposite direction to the bond’s price, fell to 2.85% yesterday, down from 2.92%.
“It’s the fear factor that comes into play, so buy government bonds,” whose prices are rising while their yields are falling.
As a safe haven, the dollar climbed to a 20-year high against other major currencies.
The dollar index, which compares the greenback to a basket of other currencies, hit 104.83 points on Thursday, a level not seen since December 2002.
At around 18:30 GMT, the euro fell against the greenback to its lowest level since December 2017 at US$1.0366 per euro (-1.40%).
“It is evident that Fed rate hikes will far exceed those of Europe, a scenario that makes the greenback more attractive than the euro,” underlined Western Union’s Joe Manimbo.
On the score, six out of 11 S&P sectors finished in the green, including healthcare and real estate.
Disney (DIS) shunned (-1.05% to $104.11) after the entertainment giant posted quarterly earnings that nearly halved. However, the group is seeing an increase in subscribers to its Disney+ streaming platform.
Twitter (TWTR) was further fined by 2.18% to $45.09, while the group bought by Elon Musk has lost top officials and is launching a campaign to cut its costs.
The campaign by the manufacturer of electric pickups is very volatile Rivian (RIVN), which faltered on Monday, rose 17.96% to $24.30. The company has confirmed that it is on schedule to open its new Georgia (South) facility in 2024.
Viral Actions Game Stop (GME) (+10% to $89.57) and AMC (AMC) (+8% to $11.20) were again favored by online brokers.
GameStop, which is remembered for rocking Wall Street in early 2021 by becoming the darling of online investors, has had to be delisted from the Nasdaq multiple times due to demand.