Volatile Markets Lead to Stock Declines, Fed Moves in Focus
By The U.S. stock market had a volatile week with the Dow Jones Industrial Average (DJIA) falling 0.6% and the S&P 500 declining 1.1%. The tech-heavy Nasdaq Composite sold off 1.7%.[0] By the closing bell, the Dow Jones Industrial Average fell 0.7% to 33,699, while the broader S&P 500 fell 0.9% to 4,081.[1] The Nasdaq Composite dropped 1.0% to finish at 11,789.
The yield on the 10-year Treasury rose six basis points to 3.67%.[2] West Texas Intermediate crude oil fell 1.1% to $77.63 a barrel.[0] The Nasdaq Composite declined 0.84% to 11,691.11 points.
Lyft (LYFT) had a massive stock decline on a disappointing earnings report.[2] The company gave an earnings outlook that significantly missed analysts’ estimates as it prepares to sacrifice profits in a bid to attract riders with lower prices.
Tesla (TSLA) stocks rose by more than 3% due to indications that the company's electric cars have seen an increase in demand following the recent price adjustments. In January, 66,051 China-made vehicles were delivered, which is an 18.4% month-over-month rise.[3]
So far, 63% of S&P 500 companies have reported fourth-quarter earnings results.[4] Fundstrat reports that 68% of those companies have surpassed their profit projections by an average of 6%, as well as 63% that have exceeded their revenue estimates by an average of 4%.[5]
Federal Reserve Chair Jerome Powell set the stage for an interesting week when he said that the Federal Reserve may have to raise rates more than is currently priced in should strong labor market reports or higher inflation reports continue.[6]
Gold dropped 0.97% to $1,872.30 per ounce and Bitcoin fell 4.2% to $21,989.8.[5]
Overall, it was a volatile week in the markets with many stocks and commodities seeing notable declines.[6] Investors should continue to keep an eye on the Federal Reserve and its potential moves, as well as earnings and guidance from major companies as the markets move forward.
0. “Dow Jones Rallies 250 Points After Jobless Claims; Tesla Stock Doubles From Lows” Investor's Business Daily, 9 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-rise-ahead-of-jobless-claims-disney-surges-on-earnings/
1. “Stock Market Today: Stocks Slump On Interest Rate Worries” Kiplinger's Personal Finance, 9 Feb. 2023, https://www.kiplinger.com/investing/stocks/stock-market-today-stocks-slump-on-interest-rate-worries
2. “Nasdaq, S&P, Dow look for direction, set to end lower for the week on Fed concerns” Seeking Alpha, 10 Feb. 2023, https://seekingalpha.com/news/3934862-nasdaq-sp500-dow-jones-stock-market-fed-earnings
3. “Stocks Relinquish Early Gains and Close Lower as Bond Yields Climb” Barchart, 9 Feb. 2023, https://www.barchart.com/story/news/14072296/stocks-relinquish-early-gains-and-close-lower-as-bond-yields-climb
4. “Dow closes nearly 250 points lower, Nasdaq sheds 1% as Alphabet shares slide: Live updates” CNBC, 9 Feb. 2023, https://www.cnbc.com/2023/02/08/stock-market-futures-open-to-close-news.html
5. “Stock market news today: Rising interest rates help spoil early gains” Markets Insider, 9 Feb. 2023, https://markets.businessinsider.com/news/stocks/stock-market-news-today-rising-interest-rates-highest-level-november-2023-2
6. “Stocks Fall This Week as Fedspeak Dampens Optimism” InvestorsObserver, 10 Feb. 2023, https://www.investorsobserver.com/news/featured/stocks-fall-this-week-as-fedspeak-dampens-optimism
