On Thursday morning, stock futures traded lower as sales on Wall Street continued, pushing the S&P 500 to its lowest level in more than a year and to the limit of a bear market.
Futures pegged to the Dow Jones Industrial Average fell 118 points, or 0.4% after five consecutive days of losses. The S&P 500 futures fell 0.5% after closing the benchmark at its lowest level since March 2021 in the previous session. Nasdaq 100 futures fell 0.9% as technology stocks continued to be at the epicenter of sales during this period of risk.
The latest inflation data on Wednesday showed consumer prices jumped 8.3% in April, higher than expected, and still close to a 40-year high of 8.5%. The report prompted investors to continue selling risky assets such as technology stocks and bitcoin.
“Stocks are being sold all over the globe, and the tone of the market is getting tougher,” Adam Chrysofouli of Vital Knowledge said in a note.
In regular trading on Wednesday, the Dow fell 326 points, or 1.02%. The S&P 500 was down 1.65% and the Nasdaq Composite was down 3.18%. The S&P 500 is now more than 18% above its high and has fallen more than 17% since the beginning of the year. The Nasdaq Composite is already almost 30% of its maximum.
On Thursday night, bitcoin fell below $ 27,000 due to fears of inflation and the collapse of the controversial TercoUSD stablecoin. Technical companies that own bitcoins have shrunk in the premarket. Tesla lost 2% and MicroStrategy fell 10%.
Disney shares fell more than 4% in pre-marketing trading after the announcement of mixed earnings results. The media giant reported greater-than-expected growth in streaming subscribers, but warned of Covid’s impact on parks in Asia.
Apple lost 1% in pre-market trading, which would push stocks to bear market if they move to regular trading. Shares closed at 19.9% of their high on Wednesday.
However, Tom Lee of Fundstrat remains committed to the stock. He said that if the market finds support, “we are in a world of expected profitability with double digits.”
“This week is interesting because the stock market crash has accelerated, so the waterfall is accelerating, but the things that usually confirm the fall of the waterfall, such as profitability or VIX, was not,” – said Lee on CNBC “Closing Bell: Overtime”. “The bond market has actually been pretty stable even in the hot CPI, and the VIX is actually falling.”
He noted that since 16 times since 1940, when the market shrank 16% in four months, it has been above six months after 12 of these events.
In economic data, investors will look for the latest information on unemployment claims, which will be published at 8:30. They are also looking forward to fresh information on the producer price index, which measures prices at the wholesale level.