The Dow Jones Industrial took a dive, with Cisco Systems (CSCO) the worst performer amid acquisition news. A trio of Warren Buffett stocks held near buy points. IPO stocks Arm (ARM), Instacart parent Maplebear (CART) and Klaviyo (KVYO) had mixed fortunes.
With the market struggling, now is the time to look for stocks holding up near buy points. Manhattan Associates (MANH), Dorian LPG (LPG) and Bunge (BG) are all worthy of consideration.
Treasury yields spiked. The 10-year yield soared 14 basis point to 4.49%, while the two-year yield rose 2 basis points to 5.14%. The yield curve remains inverted.
Stocks Fall As Investors Digest Fed, Powell
Stocks continued to struggle in the aftermath of yesterday’s Fed meeting, which turned out to be more hawkish than investors hoped for.
Central bankers are anticipating one further quarter-point rate hike this year. Most also now see a much slower path of rate cuts in the next couple of years. Federal Reserve Chair Jerome Powell attributed this to stronger-than-expected economic activity.
In addition, while he said that a soft landing is still possible, Powell said it “may be decided by factors outside of our control.”
Meanwhile, first-time claims for unemployment assistance surprisingly dropped to 201,000. This was much lower than the expected rise to 225,000
Oanda senior market analyst Edward Moya said investors are rattled over interest rates that are “not going to come down anytime soon.”
“The Fed sees a labor market that is not weakening and the key drivers of inflation are still likely to keep prices elevated,” he said in a note to clients. “Today’s jobless claims data shows that mass layoffs haven’t started yet, which should support consumer spending trends.”
Bears Maul Nasdaq As Small Caps Dive
The tech-heavy Nasdaq was pounded by the bears. It lost ground on its 50-day moving average as the index fell 1.8%. Atlassian (TEAM) lagged with a decline of 5.4%.
The benchmark S&P 500 skidded 1.6%, also falling further from its 50-day line. FedEx (FDX) stood out by popping 4.5% on better-than-expected Q1 earnings,…