Stocks Tank On Fed Hikes Anticipation
3:54 pm Monday, August 22nd, 2022
Investors are worried about further aggressive interest-rate increases and a slowing economic backdrop. They are selling assets seen as risky, such as bitcoin, and buying the dollar.
In other news: Meme-stock mall retailer Bed Bath & Beyond is down sharply. Its shares have slumped following the exit of billionaire investor Ryan Cohen.
Investors are anticipating what could be a volatile week of trading ahead of Federal Reserve Chairman Jerome Powell’s latest comments on inflation at the central bank’s annual Jackson Hole economic symposium.
Tech stocks declined on concerns over more aggressive rate hikes from the Fed. Amazon fell 3.6%. Semiconductor stocks dropped with Nvidia down .2%. Shares of Netflix were 6.6% lower following a downgrade to sell from CFRA.
Twitter (TWTR) shares are near their lows for the day following news that Elon Musk has subpoenaed Jack Dorsey ahead of October 17 trial date, according to The Verge.
S&P 500 constituents Aptiv (APTV), CarMax (KMX), and Generac (GNRC) pepper the bottom of today’s standings despite a dearth of corporate news.
Treasury yields continue to rise with the 10-yr note yield up five basis points to 3.04% while the 2-yr note yield is up nine basis points to 3.33%.
Also, the CBOE Volatility Index is at its session high, up 18.5% or 3.80 to 24.40.
