CryptoFuture – 24/7 Cryptocurrency & Blockchain News
Image default
Futures Stock

Stock futures decline as Wall Street struggles for rebound after hot inflation report

Stock futures traded lower early Thursday morning after the latest CPI data showed inflation is still running hot.

Futures tied to the Dow Jones Industrial Average shed 64 points, or 0.2%. S&P 500 futures and Nasdaq 100 futures declined 0.2% and 0.28%, respectively.

Shares of Bumble and Rivian jumped 10.38% and 5.58%, respectively, in extended trading on upbeat results for the most recent quarter. Meanwhile, Disney shares fell more than 3% after hours despite strong earnings for its most recent quarter. The company said Covid is still weighing on its theme parks in Asia.

In regular trading Wednesday, the Dow fell 326 points, or 1.02%. The S&P 500 slipped 1.65% and the Nasdaq Composite dropped 3.18%.

The moves came as investors assessed the latest inflation data, which showed consumer prices in April jumped 8.3%, which was higher than expected and still running close to their 40-year high of 8.5%. Analysts are mixed on whether the data suggests inflation has hit a peak.

While the market briefly turned positive at one point in the session, the S&P 500 at one point touched a new 52-week low and eventually closed at its lowest level of the year. The S&P 500 is more than 18% off its high and down more than 17% since the start of the year.

Stock picks and investing trends from CNBC Pro:

Still, market bull Tom Lee of Fundstrat remains bullish on stocks. He said if the market finds its footing “we’re in a world of double digit expected returns.”

“This week is interesting because the stock market declines have accelerated downwards, so the waterfall is accelerating but things that normally would corroborate a waterfall decline like yields or the VIX have not been,” Lee told CNBC’s “Closing Bell: Overtime.” “The bond market’s actually been pretty stable even in the face of a hot CPI and the VIX actually has been falling.”

He noted that of the 16 times since 1940 that the market has declined 16% in a four-month period, it was higher six months later in 12 of those events.

SoftBank is set to report earnings on Thursday morning before the bell. Affirm, Poshmark and Toast are on deck after the bell.

In economic data, investors will be looking out for the latest on jobless claims, which will be released at 8:30. They’re also looking forward to fresh data on the producer price index, which measures prices at the wholesale level.

Read More

Related posts

Stock futures slip ahead of a big week of economic data

Stock futures decline slightly after Fed induced relief rally

Stock futures are slightly higher as Wall Street weighs Russia-Ukraine tensions, potential Fed rate hikes

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.