The surprisingly strong Non Farm Payrolls report indicated that Fed might have a chance to raise rates above the 5% level in 2023.
S&P 500 is losing ground as traders react to the encouraging economic data from the U.S. The better-than-expected Non Farm Payrolls report highlighted the strength of the job market and raised worries about additional rate hikes from the Fed.
Treasury yields rallied, while the U.S. dollar gained ground against a broad basket of currencies. Higher Treasury yields put significant pressure on real estate stocks, which were the weakest segment in today’s trading session.
Ford is down 7% as traders react to the disappointing earnings report. The company missed analyst earnings expectations and noted that it “left $2 billion in profits on the table.”
Amazon is down by almost 8% amid reports indicating that U.S. antitrust agency prepared a lawsuit against the company. The earnings miss served as an additional bearish catalyst for Amazon stock.
NASDAQ managed to stabilize after yesterday’s pullback, which occured after the market close.
Tech stocks are losing ground in today’s trading session, although Apple managed to gain upside momentum despite missing analyst estimates on both earnings and revenue.
From a big picture point of view, it is not surprising to see that traders are willing to take some profits off the table after the strong rally.
Dow Jones remains stuck near the 34,000 level. Apple’s strong performance provided some support to Dow Jones, although it was not sufficient to push the index higher.
For a look at all of today’s economic events, check out our economic calendar.
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.