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Stock futures rise as indexes aim to pare weekly losses

Stock futures rise as indexes aim to pare weekly losses

U.S. stocks gained Friday, shaking off some losses from earlier this week after concerns over persistent inflation and the resilience of the U.S. economy stirred up further volatility in recent sessions.

The S&P 500 rose by more than 1.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} intraday on Friday while the Nasdaq jumped by nearly 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The Dow added more than 350 points. The sharp move higher came after Federal Reserve Chair Jerome Powell reaffirmed in an interview with Marketplace public radio on Thursday that two more 50 basis point rate hikes were on the table for the next two Fed meetings, and that officials were not “actively considering” a more aggressive 75 basis point hike. His comments echoed what other Fed officials also said this week.

Just a day earlier, the S&P 500 had closed within striking distance of a bear market, typically defined as a close of at least 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from a recent record high. The index has declined by just over 18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from its Jan. 3 record high through Thursday’s close, and it paced toward a weekly drop of 4.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} if levels hold through the end of Friday’s session.

The Dow Jones Industrial Average and Nasdaq Composite each also headed for weekly losses of 3.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 6.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, respectively, based on Thursday’s closing prices. Treasury yields have spiked and then pared gains back this week, with the benchmark 10-year Treasury yield hovering around 2.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Friday morning. Bitcoin prices recovered to trade above $30,000 after setting the lowest level since Dec. 2020, as a cratering in prices of Luna further reverberated across the broader cryptocurrency market.

The market gyrations this week coincided with two major inflation reports that came in hotter-than-expected. Thursday’s Producer Price Index showed an 11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year-over-year rise in wholesale prices last month, with this rate moderating only slightly from March’s all-time high rate of 11.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. And the Consumer Price Index released earlier this week showed a still-elevated 8.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} annual increase in prices paid by consumers last month.

“Inflation has certainly become not only topical, but a real issue for the broader market, as the Fed has also increased its outlook for the number of [interest rate] hikes needed,” Sonali Pier, managing director and portfolio manager at Pimco, told Yahoo Finance Live on Thursday. “In terms of the effect of inflation, it’s really at this point, we’re going to see if the Fed raising rates, unwinding some of the balance sheet, can take off some of that inflation froth. Because it’s quite high, and it’s starting to impact companies — from their ability to push through from a pricing power perspective, as well as consumers, whether that’s at the gas pump or as a result of food increases and the like.”

Other strategists agreed that the Fed’s response to inflation — and how well the economy holds up as the Fed tightens financial conditions to address inflation — will be the key factor to watch going forward for the markets.

“We’re in an environment right now where inflation is high. The labor market is very tight. The Fed wants to bring inflation down. They want to sort of cool the overheating in the labor market, which means their bias is to tighten financial conditions and try and slow growth,” Jason Draho, UBS Head of Asset Allocation, said on Thursday. “In that environment, it’s not great for any sort of financial assets.”

“[Once] we get some sort of real break on inflation that people become much more comfortable that it’s moderating, and moderating [to] a sustainable level that the Fed could be more comfortable, and they don’t have to hike more aggressively … I think that’s the key catalyst,” Draho said. “Unfortunately, that might take a few more months before the data starts to clearly show inflation is definitely below its peak, and the Fed could achieve its target two years out.”

“So I think for the time being, it’s definitely a choppy market,” he added.

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10:15 a.m. ET: Consumer sentiment drops to lowest level since 2011: University of Michigan

Consumer sentiment fell to a more than decade low in early May, according to the University of Michigan, as concerns around inflation persisted.

The University of Michigan’s closely watched Surveys of Consumers index dropped to 59.1 in the preliminary May report, declining sharply from April’s reading of 65.2. The latest reading marked the lowest since 2011.

The sentiment declines “were broad based — for current economic conditions as well as consumer expectations, and visible across income, age, education, geography, and political affiliation—continuing the general downward trend in sentiment over the past year,” Joanne Hsu, director of the Surveys of Consumers, said in a press statement. “Consumers’ assessment of their current financial situation relative to a year ago is at its lowest reading since 2013, with 36{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of consumers attributing their negative assessment to inflation.”

Consumers’ inflation expectations remained elevated in May, with the survey showing one-year inflation expectations were unchanged at 5.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. However, some strategists suggested the drop in risk assets over the past several weeks played an even larger role in the drop in the headline index.

“I would argue that the drop was largely a function of the plunge in stock prices. We know U. Mich is more sensitive to markets,” Neil Dutta, head of economics at Renaissance Macro Research, wrote in an email Friday morning. “Inflation is an issue sure but the inflation expectations series were unchanged.”

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9:33 a.m. ET: Stocks open higher

Here were the main moves in markets as of 9:33 a.m. ET:

  • S&P 500 (^GSPC): +43.33 (+1.10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,973.41

  • Dow (^DJI): +241.55 (+0.76{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,971.85

  • Nasdaq (^IXIC): +189.64 (+1.67{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,560.61

  • Crude (CL=F): +$3.05 (+2.87{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $109.18 a barrel

  • Gold (GC=F): -$24.60 (-1.35{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,800.00 per ounce

  • 10-year Treasury (^TNX): +9.8 bps to yield 2.9150{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

7:54 a.m. ET: Tesla shares jump in early trading after Musk says Twitter deal on pause

Shares of Tesla (TSLA) jumped by more than 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} ahead of the opening bell Friday morning after CEO Elon Musk said his $44 billion plan to purchase Twitter (TWTR) was temporarily paused, pending more details over how much of Twitter’s use base comprises bot accounts.

“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of users,” Musk said in a Twitter post early Friday. He linked to a Reuters story suggesting Twitter filings showed fake or spam accounts made up fewer than 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the company’s monetizable daily active users.

In announcing his deal to buy Twitter over the past month, Musk has suggested targeting bot accounts and authenticating users was one of his priorities for the company post-deal.

Twitter shares sank 11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in early trading to hover around $40 apiece.

—

7:45 a.m. ET Friday: Stock futures jump after Powell reaffirms 75 basis point rate hikes not currently under discussion

Here’s where markets were trading ahead of the opening bell Friday morning:

  • S&P 500 futures (ES=F): +46 points (+1.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,973.25

  • Dow futures (YM=F): +262.00 points (+0.83{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,914.00

  • Nasdaq futures (NQ=F): +206.75 points (+1.73{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 12,154.00

  • Crude (CL=F): +$1.79 (+1.69{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $107.92 a barrel

  • Gold (GC=F): -$7.90 (-0.43{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,816.70 per ounce

  • 10-year Treasury (^TNX): +9.8 bps to yield 2.915{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

6:10 p.m. ET Thursday: Stocks open lower

Here’s where markets were trading Thursday evening:

  • S&P 500 futures (ES=F): -10 points (-0.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,917.25

  • Dow futures (YM=F): -73 points (-0.23{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,579.00

  • Nasdaq futures (NQ=F): -41 points (-0.34{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,906.25

NEW YORK, NEW YORK - MAY 12: Traders work on the floor of the New York Stock Exchange (NYSE) on May 12, 2022 in New York City. The Dow Jones Industrial Average fell in morning trading as investors continue to worry about inflation and other global issues. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – MAY 12: Traders work on the floor of the New York Stock Exchange (NYSE) on May 12, 2022 in New York City. The Dow Jones Industrial Average fell in morning trading as investors continue to worry about inflation and other global issues. (Photo by Spencer Platt/Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.

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Stocks turn higher after inflation comes in hotter-than-expected

Stocks turn higher after inflation comes in hotter-than-expected

U.S. stocks turned positive Wednesday as investors digested a key report on the state of inflation in the U.S., which came in hotter-than-expected across most major metrics.

The S&P 500 ros by about 0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} intraday, shaking off losses from just after market open. The Nasdaq and Dow each also turned positive. Treasury yields gained, and the benchmark 10-year yield added more than 3 basis points to break back above 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

The moves came in the wake of the Labor Department’s April Consumer Price Index (CPI), which offered an update on price increases across the U.S. economy. While the report showed some deceleration in inflation compared to March, the rate of price increases came in well above many economists’ estimates.

The CPI rose 8.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in April over last year, coming down only marginally from March’s 8.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increase. That had been the fastest rate in about 40 years. Consensus economists were expecting an 8.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increase in April, according to Bloomberg.

Much of that deceleration came as a result of a moderation in energy prices. But excluding the volatile food and energy categories, core CPI decelerated only modestly in April compared to March. Core CPI rose by 6.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} last month over last year, following March’s 6.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increase. This was also hotter than the 6.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} rise expected.

The latest inflation data helps to inform how far the Federal Reserve will have to go on raising interest rates and tightening monetary policies in order to rein in rising prices. Uncertainty about the Fed’s next moves — and about whether these moves will bring down inflation while avoiding triggering a recession — has stirred up heightened volatility across risk assets, bringing the S&P 500 down by nearly 17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from its recent record high from Jan. 3. Stocks briefly turned lower Tuesday afternoon after Cleveland Fed President Loretta Mester said she saw the case for raising interest rates by 50 basis points at the next two Fed meetings, while leaving the door open to a potentially even larger 75 basis point rate hike.

“We’re going to see more volatility. This is not going to be an easy path forward as we still have a lot of unknowns,” Omar Aguilar, Schwab asset management CEO and chief investment officer, told Yahoo Finance Live on Tuesday. “There’s still a lot of uncertainty in many parts, not just in the macroeconomic and the economic structure, but also just geopolitically, things that haven’t been resolved, like the war in Ukraine as well as just the COVID situation in China.”

Others also suggested investors should brace for more near-term volatility.

“We finally started to see some signs of panic in the past week or so, obviously late last week and Monday,” Scott Brown, LPL Financial technical market strategist, told Yahoo Finance Live on Tuesday. “But we’re a little bit skeptical that we’re actually at the bottom. It doesn’t mean we have to go down a lot further. But a lot of things we look at, whether it’s put-to-call ratios really being extreme, the VIX spiking above 40 … They aren’t really as extreme as we typically would see in a correction, bottom, of this magnitude.”

—

9:32 a.m. ET: Stocks open lower as investors digest inflation data

Here were the main moves in markets as of 9:32 a.m. ET:

  • S&P 500 (^GSPC): -10.85 (-0.27{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,990.20

  • Dow (^DJI): -3.09 (-0.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 32,157.65

  • Nasdaq (^IXIC): -37.78 (-0.32{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,699.89

  • Crude (CL=F): +$4.28 (+4.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $104.04 a barrel

  • Gold (GC=F): +$6.30 (+0.34{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,847.30 per ounce

  • 10-year Treasury (^TNX): +4.3 bps to yield 3.0360{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

8:50 a.m. ET: CPI comes in at higher-than-expected 8.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} annual clip in April

U.S. consumer prices rose at a slightly slower pace in April compared to March, though persistent supply-side disruptions still kept inflation near its highest level in 40 years. And core consumer prices rose more than anticipated even while decelerating compared to March, suggesting underlying inflationary trends across the economy remained hot.

The Bureau of Labor Statistics’ April Consumer Price Index (CPI) rose 8.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in April over last year, coming down from March’s 8.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} advance. That rise had marked the fastest rate since 1981. Consensus economists were expecting an 8.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increase in April, according to Bloomberg.

On a month-over-month basis, the broadest measure of CPI increased by 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, compared to March’s 1.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} rise. Excluding food and energy, core CPI also decelerated only modestly in April compared to March. Core CPI rose by 6.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} last month over last year, following March’s 6.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increase. And on a month-over-month basis, core CPI rose 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, compared to the 0.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} rate expected.

—

7:45 a.m. ET: Mortgage applications rise for a back-to-back week despite increasing rates

U.S. mortgage application volume rose last week for a second consecutive week, even as mortgage rates rose to their highest levels in over a decade.

The Mortgage Bankers Association’s weekly mortgage applications index registered a 2.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} rise during the week ended May 6, according to the firm’s latest weekly report Wednesday morning. Purchase applications led the way higher, with these climbing by 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} week-on-week on a seasonally adjusted basis. Still, on a seasonally unadjusted basis, applications for purchases were 8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} lower compared to the same week last year. And applications for refinances fell by 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} compared to the previous week and by 72{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} compared to the same week last year.

“The increase in mortgage applications last week was driven by a strong gain in application activity for conventional and government purchase loans, even as mortgage rates rose to their highest level – 5.53{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} – since 2009,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a press statement. “Despite a slow start to this year’s spring home buying season, prospective buyers are showing some resiliency to higher rates. Purchase activity has now increased for two straight weeks.”

“The rapid rise in mortgages rates continues to hit the refinance market, with activity 70{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} below a year ago,” Kan added. “Most homeowners refinanced to lower rates in the past two years.”

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7:38 a.m. ET Wednesday: Stock futures rise as investors await inflation data

Here’s where markets were trading Wednesday morning:

  • S&P 500 futures (ES=F): +45.75 points (+1.14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,042.50

  • Dow futures (YM=F): +282.00 points (+0.88{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 32,369.00

  • Nasdaq futures (NQ=F): +182.75 points (+1.48{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 12,531.75

  • Crude (CL=F): +$3.99 (+4.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $103.75 a barrel

  • Gold (GC=F): +$11.30 (+0.61{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,852.30 per ounce

  • 10-year Treasury (^TNX): -6.1 bps to yield 2.932{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

6:15 p.m. ET Tuesday: Stock futures steady ahead of CPI data

Here’s where markets were trading Tuesday evening:

  • S&P 500 futures (ES=F): -6 points (-0.15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,990.75

  • Dow futures (YM=F): -44 points (-0.14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 32,043.00

  • Nasdaq futures (NQ=F): -21 points (-0.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 12,328.00

NEW YORK, NEW YORK - MAY 05: Traders work the floor of the New York Stock Exchange during morning trading on May 05, 2022 in New York City. Stocks opened lower this morning after closing high on Wednesday after the Federal Reserve announced an interest-rate hike by half a percentage point in an effort to further lower inflation. (Photo by Michael M. Santiago/Getty Images)

NEW YORK, NEW YORK – MAY 05: Traders work the floor of the New York Stock Exchange during morning trading on May 05, 2022 in New York City. Stocks opened lower this morning after closing high on Wednesday after the Federal Reserve announced an interest-rate hike by half a percentage point in an effort to further lower inflation. (Photo by Michael M. Santiago/Getty Images)

—

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Stock market investors are getting very worried about a recession: Goldman Sachs

Stock market investors are getting very worried about a recession: Goldman Sachs

Economic downturn anxiousness seems to be spreading as a result of the stock sector, overshadowing a respectable company earnings reporting time.

“Investor problems about Fed tightening, surging desire premiums, and the hazard of recession have outweighed the astonishing strength of 1Q earnings reports,” Goldman Sachs strategist David Kostin wrote in a observe on Monday. “Final results have exceeded anticipations and prompted modest upward revisions to estimates for the remainder of 2022 and for 2023, driven largely by the energy sector. Having said that, the increase to analyst estimates has not been more than enough to offset portfolio supervisor fears about the downside hazard to EPS if the financial system falls into economic downturn and the draw back danger to valuations as the Fed tightens coverage.”

Goldman also reiterated its 35{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} probability of a U.S. recession inside of two yrs.

A bear at the Ovakorusu Celal Acar Wildlife Rescue and Rehabilitation Center in the Karacabey district of Bursa, Turkey on October 12, 2021. (Photo by Sergen Sezgin/Anadolu Agency via Getty Images)

A bear at the Ovakorusu Celal Acar Wildlife Rescue and Rehabilitation Heart in the Karacabey district of Bursa, Turkey on October 12, 2021. (Image by Sergen Sezgin/Anadolu Company by using Getty Illustrations or photos)

The cautious remarks from the financial investment financial institution arrives following a main pickup in inventory marketplace volatility as traders fret about fascination fee hikes, weak tech earnings, and other important threats.

The Dow Jones Industrial Ordinary plunged 1,120 factors very last Thursday, or 3.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The S&P 500 tanked 3.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. As for the Nasdaq Composite, it dropped 5.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for its worst working day considering the fact that 2020. Thursday’s brutal session represented a swift sentiment reversal from Wednesday, when traders breathed a sigh of aid soon after Federal Reserve Chairman Jerome Powell explained that the central financial institution was not contemplating a 75 basis-issue raise in interest costs.

The Dow Jones Industrial Ordinary soared 932.27 factors and the S&P 500 acquired 2.99{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on Wednesday, the greatest gains for the two indices because 2000. Even the overwhelmed-up Nasdaq Composite popped 3.19{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Sector volatility has prolonged into the new investing 7 days.

Dow Jones Industrial Typical futures fell 428 details as of 6:21 a.m. Charges for bitcoin, ethereum and other cryptocurrencies ongoing to march reduce as effectively.

Goldman’s Kostin factors to other market place moves as signaling soaring recession fears.

“Rotations in just the fairness marketplace also mirror considerations about recession risk,” Kostin additional. “Defensive industries just lately have sharply outperformed cyclical industries. The magnitude of cyclical underperformance appears regular with a steeper financial slowdown than the latest rate of deceleration in metrics this kind of as the ISM.”

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Stock futures sink as volatility grips markets

Stock futures sink as volatility grips markets

U.S. stocks fell Monday morning to extend last week’s losses, as investors looked ahead to more data this week on inflation and earnings to gauge the strength of the economy and corporate profits as the Federal Reserve continues to tighten monetary policy.

The S&P 500 dropped nearly 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. This added to losses after the index posted a fifth straight weekly decline last week. The Nasdaq sank by another 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, and the Dow fell by more than 400 points.

Investors this week are awaiting more data on the state of inflation in the U.S., which will help show how much more aggressive the Fed many need to be in order to rein in elevated price pressures. Wednesday’s Consumer Price Index (CPI) and Thursday’s Producer Price Index (PPI) for April are expected to show a deceleration in price increases, suggesting March may have been the peak in the rate of price increases across the economy.

This data will come in the wake of the Fed’s latest monetary policy decision and press conference from Federal Reserve Chair Jerome Powell, which was met with heightened volatility among risk assets. Stocks spiked and then slid, and Treasury yields marched higher following the monetary policy decision, as investors appraised whether the tools at the central bank’s disposal will be sufficient to keep inflation from becoming further entrenched while preserving economic growth.

“We knew the Fed was going to hike rates 50 basis points — it was the most telegraphed hike in the history of mankind. But the markets sold off into it. And then they finally did it and it’s like, okay, it’s done,” Eric Diton, The Wealth Alliance president and managing director, told Yahoo Finance Live on Friday. “And so you got a lot of short covering and you got a big rally.”

“That was not the real deal. The real deal was what followed … and that is that there’s a tremendous amount of uncertainty out there,” he added. “Yes, we know the Fed’s going to hike. How many times they’re going to hike? There’s a huge disparity between where rates are and where the inflation rate is. Is the Fed going to have to get up to 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} or 7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, or is inflation going to come down, they’re going to meet in the middle? That uncertainty is one of the big factors that’s driving this market to continue to come down.”

Other concerns to economic growth have also abounded recently, as Russia’s war in Ukraine and China’s renewed virus-related lockdowns stoked concerns over further persistent supply chain disruptions. Many strategists agreed that the next moves in the market would be driven by Fed’s response to inflation amid this backdrop.

“Looking forward, the path of the market will depend on the Fed’s battle against inflation,” David Kostin, Goldman Sachs chief U.S. equity strategist, wrote in a note. “In our base case, the negative impact on valuations from higher real rates will be partially offset by a narrowing yield gap. If recession risk rises, interest rates may fall but not by enough to prevent equity multiple sand share prices from falling further.”

Meanwhile, earnings season will continue this week with major names including Disney (DIS), Peloton (PTON) and Rivian Automotive (RIVN) reporting results. So far, 85{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of S&P 500 components have reported actual results, according to FactSet. And as of Friday, the expected earnings growth rate for the S&P 500 was 9.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, which, if maintained, would represent the slowest increase for the index since the fourth quarter of 2020 and fall below its average five-year growth rate of 15.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

—

9:30 a.m. ET: Stocks open lower, holding overnight losses

Here were the main moves in markets as of 9:30 a.m. ET:

  • S&P 500 (^GSPC): -60.53 (-1.47{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,062.81

  • Dow (^DJI): -422.40 (-1.28{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 32,476.97

  • Nasdaq (^IXIC): -219.38 (-1.81{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,925.28

  • Crude (CL=F): -$2.17 (-1.98{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $107.60 a barrel

  • Gold (GC=F): -$13.40 (-0.71{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,869.40 per ounce

  • 10-year Treasury (^TNX): -0.3 bps to yield 3.121{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

7:43 a.m. ET Monday: Stock futures head for a lower open

Here’s where markets were trading Monday morning:

  • S&P 500 futures (ES=F): -85 points (-2.06{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,034.50

  • Dow futures (YM=F): -555 points (-1.69{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 32,254.00

  • Nasdaq futures (NQ=F): -337 points (-2.65{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 12,358.75

  • Crude (CL=F): -$2.65 (-2.41{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $107.12 a barrel

  • Gold (GC=F): -$25.10 (-1.33{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,857.70 per ounce

  • 10-year Treasury (^TNX): +5.3 bps to yield 3.177{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

NEW YORK, NEW YORK - MAY 06: Traders work on the floor of the New York Stock Exchange (NYSE) on May 06, 2022 in New York City. Following a day that saw a drop of over 1000 points over inflation fears, the Dow Jones Industrial Average was down over 200 points in morning trading. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – MAY 06: Traders work on the floor of the New York Stock Exchange (NYSE) on May 06, 2022 in New York City. Following a day that saw a drop of over 1000 points over inflation fears, the Dow Jones Industrial Average was down over 200 points in morning trading. (Photo by Spencer Platt/Getty Images)

—

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.

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Metaverse is ‘going to be a very big opportunity,’ Qualcomm CEO says

Metaverse is ‘going to be a very big opportunity,’ Qualcomm CEO says

In Q1 2022, Meta’s (FB) metaverse business — regarded as Truth Labs — operated at a loss of virtually $3 billion, resulting in skepticism in the industry about whether the metaverse certainly has a area in the electronic long term. Meta CEO Mark Zuckerberg pointed out that expenses in the present are “laying the groundwork” for this engineering to strike the mainstream.

In spite of the skepticism, Qualcomm (QCOM) CEO Cristiano Amon agrees that the very best has yet to occur for metaverse adoption and investment decision.

“It’s genuine, it is going to be a really big opportunity,” Amon explained to Yahoo Finance Are living. “We begun investing in basic technologies that allow the merger of actual physical and electronic spaces more than a decade back. It’s no solution that because of these early investments, for the about 40 virtual fact and augmented fact devices that exist in the environment, [they are] all powered by Qualcomm.”

Amon joined Yahoo Finance Reside from the 2022 Milken Institute Worldwide Conference in Los Angeles in an special job interview with Yahoo Finance’s Alexandra Garfinkle. Amon reviewed the company’s presence in the car business, partnerships, competitiveness, and the metaverse.

And even though Meta’s $3 billion monthly bill for Fact Labs in the to start with quarter of 2022 may well appear to be hefty, the enterprise misplaced additional than $10 billion throughout 2021. Horizon Worlds, Meta’s flagship VR social app, piloted creator monetization capabilities late in the quarter and is predicted to start a website variation to lengthen accessibility to those who do not possess an Oculus Quest 2 or identical headset. The platform reached a milestone of 300,000 end users earlier this yr.

According to Amon, Qualcomm proceeds to retain current and secure new partnerships with industry giants like Meta and Microsoft (MSFT) to give hardware and application for their prolonged truth (XR) firms.

“One of our biggest partnerships is with Meta,” he stated. “We have experienced a pretty effective partnership with them for VR with the Quest and the Quest 2. We declared at CES that we’re now executing a customized chip for augmented reality with Microsoft as the Microsoft HoloLens gets completely ready to scale, and we announced a partnership, for case in point, [a partnership] with ByteDance for VR for Tiktok.”

A visitor tries the

A visitor tries the “metaverse Service” at SK Telecom stand during GSMA’s 2022 Cellular Earth Congress (MWC), in Barcelona, Spain February 28, 2022. REUTERS/Albert Gea

Investment threats

The Federal Reserve elevated desire fees by .50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on Wednesday in an work to pump the brakes on surging inflation. In mild of the Fed’s hawkish curiosity fee hike campaign, uncertainty continues to be in regard to metaverse expense as traders start to favor value more than progress stocks.

The issuance of exchange-traded funds like the ProShares Metaverse ETF (VERS) demonstrates that some investors, both institutional and retail, identify the option in metaverse. On the other hand, the fund and comparable ETFs like it have been hammered by macroeconomic ailments.

In any circumstance, Amon maintains optimism for the future of metaverse and XR technological innovation.

“We have a amount of unique developments to at some point be ready to build companion to your smartphone with totally immersive augmented actuality eyeglasses that actually is likely to appear like [normal glasses],” he explained. “And I believe which is a large chance. It could be as significant as phones.”

Thomas Hum is a writer at Yahoo Finance. Comply with him on Twitter @thomashumTV

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CEOs and Twitter trolls take on Roe v. Wade

CEOs and Twitter trolls take on Roe v. Wade

The Supreme Courtroom is evidently poised to repeal the federal abortion defense of Roe v. Wade, and CEOs close to the country are getting termed out. Some are decrying the shift. Other folks are declaring practically nothing. Handful of, if any, are publicly cheering.

There is no uncomplicated playbook below. Although firms have zero obligation—legal or otherwise—to take a stand on any social or political difficulty, they have in modern many years waded into those waters (take into consideration right after George Floyd’s killing, North Carolina’s bathroom ban, and Georgia’s voting guidelines). And of class corporations really do not have opinions, CEOs do, which they may well or might not share, and—as Brian Moynihan, CEO of Lender of The us pressured this 7 days on CBS re: Roe—may or may perhaps not be the prevailing view of their constituents.

“It’s the settled regulation of the land. We imagine individuals must have that accessibility,” Moynihan said, cautioning that his belief does not replicate that of all the company’s 200,000 U.S. workforce. “I could have a own level of see, but which is not what we do,” he reported.

Then, there’s the concern itself — its fate however hanging in the harmony. Abortion has lengthy been a 3rd rail of American politics. Some CEOs are stating their positions additional forcefully than Moynihan, possibly simply because they feel strongly about the difficulty or simply because doing so is excellent for their business—or both. These who are loathe to talk out about abortion may perhaps think they danger alienating 40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} or so of not just their employees, but clients and shareholders—never thoughts area citizens and politicians. (BTW, parsing professional-option and pro-lifestyle viewpoint polls is a fraught science all its personal.)

The paradox is the more these complicated challenges come to the fore, the a lot more main executives are currently being requested to weigh in. And they’ve watched with alarm as Disney CEO Bob Chapek fumbled the handling of his company’s response to Florida’s Parental Rights in Training Act, or what critics have dubbed the “Will not Say Gay” bill.

At the Milken Meeting this week, I asked Mary Barra, CEO of GM—and Disney board member—about this.

Serwer: Social issues are tough ideal now. How do you think about that?

WASHINGTON, DC - MAY 03: Pro-choice activists protest in response to the leaked Supreme Court draft decision to overturn Roe v. Wade in front of the U.S. Supreme Court May 3, 2022 in Washington, DC. In a leaked initial draft majority opinion obtained by Politico and authenticated by Chief Justice John Roberts, Supreme Court Justice Samuel Alito wrote that the cases Roe v. Wade and Planned Parenthood of Southeastern Pennsylvania v. Casey should be overturned, which would end federal protection of abortion rights across the country. (Photo by Alex Wong/Getty Images)

WASHINGTON, DC – May perhaps 03: Professional-decision activists protest in response to the leaked Supreme Court docket draft selection to overturn Roe v. Wade (Getty Photographs)

Barra: “Well, at Standard Motors, we really focus on what are our values, and mainly because we know our staff joined the company, mainly because they want to be part of a company that has, you know, values that they share. And so when we make statements, it’s typically about our values of what we believe. And, you know, Basic Motors stands for inclusion, we want all people to participate in our all electric powered upcoming. And we price all of our consumers and all of our staff members. So which is our concentration. And when we make statements, it’s connected with our values and what we think.”

Not a large amount of meat on them bones, but to be truthful, relying on where you sit and what you imagine, it’s tough things.

Previous Saturday in Omaha I listened as Warren Buffett offered sage context at his yearly conference:

“…The past time that the country was [this] tribal was when I was a kid and Roosevelt was in. Possibly you hated Roosevelt, or you liked him… Folks are constantly heading to be partisan. They are going to have spiritual beliefs. They [always] experienced a selected sum of tribal[ism] always…but I do not think it’s a fantastic progress for society…”

As for abortion rights particularly, the controversy is each a ethical debate concerning a women’s suitable to opt for and when lifestyle commences, and a political just one about which entity should adjudicate that dilemma, federal or condition governing administration. With the prospective demise of Roe v. Wade, state abortion rules, which are now pretty varied, will come to be even additional so, further more accentuating the distinction in between blue states and pink states. Will it stick to that we will have blue companies and crimson providers? Perfectly, we kind of currently do.

As Yahoo Finance’s Alexis Keenan reports: “Amazon (AMZN), Apple (AAPL), Bumble (BMBL), Citigroup (C), Levi Strauss (LEVI), Match Team (MTCH), and Yelp (YELP) reimburse travel expenses incurred to get abortion treatment which is legally unavailable inside their home point out.

U.S. Senator Elizabeth Warren (D-MA) joins demonstrators during a protest outside the U.S. Supreme Court, after the leak of a draft majority opinion written by Justice Samuel Alito preparing for a majority of the court to overturn the landmark Roe v. Wade abortion rights decision later this year, in Washington, U.S. May 3, 2022. REUTERS/Evelyn Hockstein

U.S. Senator Elizabeth Warren (D-MA) joins demonstrators during a professional-preference protest outside the U.S. Supreme Court docket to guidance abortion rights (Getty Photographs)

In the meantime, Salesforce (CRM) is featuring to decide on up relocating costs for its staff who live in a condition with an abortion ban exceeding that of Roe, and shift to a different devoid of this kind of limits.”

On the other hand organizations like Walmart, American Airways, and the aforementioned Disney have built no statements. As for CEOs who are in favor of overturning Roe v. Wade, I’m sure they’re some out there, but I couldn’t find any. However, The New York Situations studies this on a linked observe:

“In September, John Gibson, the chief govt of Tripwire Interactive, a gaming firm centered in Ga, wrote on Twitter that he was “happy” of the Supreme Courtroom for “affirming the Texas law banning abortion for babies with a heartbeat.” His feedback angered colleagues, and in just a several days he was replaced.”

CEOs who are pro-lifetime may possibly be keeping mum for the reason that they’re fearful of getting rid of their employment. But if abortion is these a divisive situation, why are professional-preference CEOs talking out? If conservative CEOs consider it is because they’ll be attacked by the woke, Twitter troll mob, properly, the un-woke Twitter troll mob is none also helpful, both.

It’s not a coincidence that the demise of constructive govt (aka gridlock) has transpired at the exact time we are viewing companies acquiring to action into the political and social arena, i.e. observe stakeholder capitalism. Anyone or anything has to fill the breach and get the direct. I’m glad CEOs are stepping up in many conditions, but it actually isn’t their purview. We have to have lawmakers to come with each other and do their jobs,

George Mitchell, a Democrat and former Senate Vast majority Leader, after informed me he experienced evening meal with his GOP counterpart, the late Bob Dole, each individual 7 days without having are unsuccessful in the early 1990s. And then there’s this from an obituary this week in the New York Situations of Norman Mineta, former congressman and cupboard member who as a Japanese American was interned in a U.S. jail camp as a boy: “Mr. Mineta promptly created it obvious that, for him, transportation was not partisan. ‘There are no Democratic or Republican highways,’ he advised reporters.”

Sadly, the tribal trolls disagree.