Source: Fortune
Summary
The US stock market had its worst day since October, with the S&P 500 sinking 2.6% and the Dow Jones Industrial Average falling 1.4%. Tech stocks, including Nvidia, Broadcom, and Micron Technology, led the decline, with losses of 6.2%, 7.9%, and 13.3%, respectively. A strong jobs report boosted expectations of a potential interest rate hike by the Federal Reserve, while bond yields jumped and oil prices surged. The yield on the 10-year Treasury rose to 4.54%, and the price of Brent crude fell 2% to settle at $93.09.
Our Reading
The numbers tell one story.
Tech stocks are leading the market lower, with pricey valuations giving them outsized influence. The strong jobs report has boosted expectations of a potential interest rate hike, and bond yields are jumping. The market sees a better than 60% chance the Fed will push rates higher by the end of the year. The war with Iran has blocked crude oil shipments, fueling a rise in inflation. The price of Brent crude has surged to $93.09, and fuel prices are moving higher.
The strategy enters a familiar phase: waiting for the Fed’s next move.
Author: Evan Null
