The major indices moved sharply lower after the higher-than-expected CPI threw cold water on the market. Not helping the cause is the Nasdaq index moved above its all-time high closing level intraday yesterday, and could not stay above that level (closing lower on the day yesterday). That failure made the decline today easier. The market was simply overbought and acted that way yesterday. It got the kick lower on the data today. Having said that, the indices did rally into the close, taking some of the hurt away.
At risk is the 5-week string of higher closes and the 14 of 15 weeks higher. All major currencies are now lower thanks to the sharp declines today.
A snapshot of the closes are showing:
- The Dow industrial average fell -524.63 points or -1.35% at 38272.74. At session lows, the index was down -757.53 points. The decline was still the largest % decline since March 22, 2023 today
- The S&P index fell -68.67 points or -1.37% at 4953.16. At session lows, the index was down -101.52 points. The fall was the worst since January 31.
- The Nasdaq index tumbled -286.96 points or -1.80% at 15655.59. At session lows, the index was down -391.10 points. The fall was the largest decline since January 31.
For the Russell 2000 index of small-cap stocks, it got hammered with a decline of –3.96%. That is the worst one-day decline since June 16, 2022. The higher yields in US was straw that broke the small-caps back. The 2-year yield is up 17.7 basis points at 4.647%. That is the highest level since December 13. The 2-year yield is moving closer to its 100-day MA at 4.685% and its 200-day MA at 4.715%. The 10-year yield is up 14.4 basis points at 4.314% – it’s highest level since December 1. Its yield is moving closer to its 100 day MA at 4.329%.
With the sharp decline in the Nasdaq, surely the high-flying Nvidia moved lower?
It did but only by -0.17% or -$1.20 at $721.28. Super Micro Computer which has seen meteoric gains of late, rose $18.48 or 2.39% to $791.49. Go figure.
A snapshot of other large-cap stocks shows:
- Amazon, -2.15%
- Meta, -1.87%
- Apple, -1.15%
- Alphabet, -1.62%
- Microsoft, -2.15%
- Tesla, -2.18%
- Adobe -1.63%
- Caterpillar, -2.73%
- AMD, -0.22%
- Shopify, -13.40% (they reported earnings)
- Biogen, -7.39% (they reported today)
- Marriot, -5.59% (they reported today).
- Coca-Cola -0.59% (they reported today)
