Stocks Today-1/28: Stocks Crash Despite Apple and Tesla Under $800

Updated at 9:52 a.m. EST

U.S. stocks extended their January slump on Friday, with market volatility gauges holding near fifteen-month highs, as investors look to cap off another wild week of trading on Wall Street that has resulted in the measure broader national actions deeper into corrective territory.

The Federal Reserve’s hawkish stance on rates and inflation since the start of the week, coupled with a disappointing earnings season and suggestions of slowing economic growth, has dragged global stocks lower this week, while heightened market volatility – largely related to stock options trading – sent the Dow Jones into triple-digit intraday swings for much of the past week.

The prospect of faster rate hikes — and Bank of America is forecasting seven hikes this year — has taken the U.S. dollar index, which tracks the greenback against a basket of comparable global currencies, to the highest levels since July. 2020.

Growth concerns are also showing up in the bond market, where the spread between 2-year and 10-year bond yields has narrowed to just 62.2 basis points, raising the prospect of a steady -so-called curve inversion – where 2-year bonds note yields rise above 10-year yields – suggesting a near-term recession.

That said, the Fed’s favorite reading on inflation, the PCE core price index, was broadly in line with expectations in December, even as a measure of price pressures hit the fastest rate. since 1982.

Earnings beat expectations from tech giant Apple (AAPL) – Get the Apple Inc. could provide markets with an early respite before trading begins, but investors will first need to go through December’s key inflation reading at 8:30 a.m. EST, as well as quarterly updates from december of chevron (CLC) – Get Chevron Corporation report and caterpillar (CAT) – Get the Caterpillar Inc. report..

The Dow Jones Industrial Average was flagged indicating an opening bell drop of 270 points while the S&P 500 fell 28 points to extend the broadest benchmark of US stocks to a 9.8% drop. since the beginning of the year.

Apple gave the Nasdaq Composite a boost, but the tech-focused benchmark was 85 points lower at the start of trading, a move that would take its year-to-date decline to 14.4% .

Shares of Apple, in fact, rose more than 2.6% in premarket trading, as record holiday sales on the back of a surge in iPhone demand offset concerns over global supply chain disruptions and chip shortages and propelling the tech giant into a crushing first quarter. earnings report.

You’re here (TSLA) – Get the Tesla Inc report, however, extended its recent slump, dropping 3.7% to slide below $800. The clean-energy automaker has lost more than $32 billion in market value, or 33%, since hitting a record high in early November.

In contrast, Robinhood (HOOD) – Get the Class A report from Robinhood Markets, Inc. shares fell 4.8% after the online trading platform posted a bigger-than-expected loss in the fourth quarter and said near-term revenue would be significantly below Street’s forecast.

Visa (V) – Get the Class A report from Visa Inc. Shares rose 5.5% after the world’s largest credit card posted better-than-expected first-quarter profits on higher post-pandemic spending and the full return of international travel.

American steel (X) – Get United States Steel Corporation report shares were also significantly higher, rising 5.6% after posting stronger-than-expected fourth-quarter sales and stepping up its $500 million buyback plan.

caterpillar (CAT) – Get the Caterpillar Inc. report.however, fell 4% even as it posted stronger-than-expected fourth-quarter results amid a continued rebound in global construction equipment sales and soaring commodity prices.

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