Consumer discretionary and technology led the declines in the S&P 500 index. This is the second worst start to the year for the S&P 500 in history as it lost 17.4% in the first 90 days of trading.
The prospect of a rise in interest rates has been directly affecting growth stocks. Apple shares were the biggest loser for the Nasdaq and S&P 500 indices.
This day it was learned that the consumer price index (CPI) suggested that inflation may have reached a maximum in April, but that it is likely to remain high enough for the Federal Reserve to keep an eye on cooling it.
The CPI rose 0.3% last month, the smallest increase since August. Economists polled by Reuters had forecast consumer prices to gain 0.2% in April.
“There was not enough of a positive surprise to prop up the market,” said Quincy Krosby, chief equity strategist at LPL Financial, adding: “This is a market that is still trying to come to terms with whether the Fed is going to be able to rein in inflation. early”.
“There’s a lot of attention on Apple right now,” Krosby said, adding, “Given its weighting, Apple is the barometer of the market from many perspectives.” Investors are also eager for more inflation data on Thursday, when the US producer price index is released.
Lastly, Coinbase Global Inc fell after its first-quarter revenue missed estimates amid global market turmoil that has curbed investor appetite for risky assets.
Source: Ambito
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