Stocks fell for a second day on Wednesday. At the same time, interest rates rose to new highs as investors predicted the Federal Reserve would tighten policy aggressively to combat inflation and, as a result, weaken the economy.
On Wednesday, the Dow Jones Industrial Average fell 270 points or 0.8 percent. After losing roughly 2.3 percent on Tuesday, the S&P 500 fell 1.15 percent, and the Nasdaq Composite fell 2%.
Investors anticipate the release of minutes from the Fed’s most recent meeting on Wednesday afternoon; it might impact investors’ views and provide new information about the Fed’s plan to shrink its balance sheet. It comes after stock prices plummeted on Tuesday due to statements from Fed officials. On Wednesday, the 10-year Treasury yield rose above 2.65%, reaching a three-year high and continuing its torrid rise this week. On Monday, the rate was 2.40 percent.
The Dow Jones Industrial Average fell 280 points, and the Nasdaq Composite fell 2.3 percent after she spoke. Investors were exited the sector and awaited higher interest rates to slow the economy. Hence, following Tuesday’s losses, tech stocks tumbled again on Wednesday. Apple, Microsoft, Amazon, and Tesla were among the companies that contributed to the sector’s declines; this caused the Nasdaq to drop again on Tuesday.
Utilities, healthcare, and consumer staples rose 2% on Wednesday, with Amgen, Merck, and Johnson & Johnson all up 2%. Walmart and Procter & Gamble also saw their stock prices rise modestly.
Crude prices, which have been volatile since the war began, were unchanged on Wednesday after falling on Tuesday and then climbing 1% premarket. Oil prices in the United States fell 0.1 percent to $101.87 per barrel. In contrast, Brent, the international standard, fell 0.11 percent to $106.50 per barrel.
Stocks Making the Most Significant Moves
In premarket trade, Twitter dipped 1.5 percent, potentially snapping a three-day winning streak in which it had gained nearly 32 percent. Elon Musk, who is now Twitter’s top shareholder, modified the sort of SEC filing he made to prove his stock acquisition was not “passive.”
Spirit Airlines (SAVE) said that its board of directors would explore JetBlue’s new $3.6 billion cash purchase offer (JBLU). Frontier Airlines parent Frontier Group (ULCC) agreed to buy Spirit for $2.9 billion in cash and stock in February. Spirit fell 2.8 percent in premarket trading, JetBlue fell 3.7 percent, and Frontier fell 3.9 percent.
Tilray (TLRY) is a cryptocurrency. Tilray surged 2.1 percent in premarket trading after announcing an unexpected profit for the most recent quarter, despite revenue falling short of analyst expectations.
Intel (INTC) is a semiconductor company. Following the suspension of semiconductor shipments to clients in Russia and Belarus last month, Intel has announced the suspension of business operations in Russia. In premarket activity, Intel lost 1.1 percent.
Gogo (GOGO) is a popular social media platform. Gogo jumped 10.4% in premarket trading after the aviation sector broadband provider revealed its shares would enter the S&P SmallCap 600 index before the market opened on Friday.
Array Technologies (ARRY) jumped 14.5 percent in premarket trading after reporting better-than-expected quarterly revenue and issuing an encouraging revenue outlook. Kevin Hostetler will take over as CEO on April 18, succeeding Jim Fusaro, who is retiring.
Simply Good Foods (SMPL) – The nutritional foods and snacks manufacturer announced better-than-expected earnings and revenue in the most recent quarter and raised its sales projection for the current year.