Stocks and bonds fell hard a day after the market rallied on the FOMC meeting. On the NYSE, 94% of stocks were down on the day versus 6% rising. NASDAQ saw 87% of stocks fall versus 13% rising.
VIX rose and Crude oil inched higher.
• Dow ends down over 1,000 points, Nasdaq falls 5% as stocks erase post-Fed gains.
Headlines of the Day
Stocks Crater in Sharp Turnabout After Fed Rally
The surge in stocks that followed the Federal Reserve decision proved short lived, with traders worried that officials could struggle to fight persistently high inflation amid the lingering threat of a recession.
Powell Vows to Cool Prices With Hikes That Risk Economy Pain
Fed chief sets aggressive path, stops short of drastic action. Expresses confidence rate hikes won’t induce recession
Oil Rises With OPEC+ Ratifying a Small Output Hike
Alliance agrees output hike amid limited spare capacity. EU plans a phaseout of crude, fuels imports from Russia
E-commerce stocks plummet as consumers pull back online spending
Shoppers are eager to head back to brick-and-mortar stores, while inflation is stoking fears that consumers are pulling back their spending on some items to still afford the essentials.
Russian War Leads EU Bloc to Push for Faster Trade Deals
At least 10 member states call for accelerating trade deals. New Asian partnership seen as ‘wake-up’ call for Europe. The signatories want faster negotiations with New Zealand, Australia, India and Indonesia, while speeding the implementation of accords agreed with Chile, Mexico and the Mercosur bloc of countries, which include Argentina, Brazil, Uruguay and Paraguay.
Economic Data Results for 5-4-2022
United States Initial Jobless Claims
U.S. initial claims for unemployment insurance are low even though they rose by 19,000 to 200,000 in the week ended April 30 versus estimates of 180,000. The four-week moving average in initial claims edged higher, rising from 180,000 to 188,000 in the week ended April 30. Continuing claims for unemployment insurance benefits fell from 1.403 million to 1.384 million in the week ended April 23. The four-week moving average in continuing claims dropped from 1.453 million to 1.417 million. The insured unemployment rate remained very low at 1%.
United States Nonfarm Labour Productivity
Nonfarm labor productivity in the US slumped an annualized 7.5 percent in the first quarter of 2022, much more than market expectations of a 5.4 percent drop and following a downwardly revised 6.3 percent expansion in the previous period. It was the steepest contraction in nonfarm labor productivity since the third quarter of 1947.
United States Nonfarm Unit Labour Cost
Unit labor costs in the US nonfarm business sector surged by 11.6 percent in the first quarter of 2022, above market forecasts of a 9.9 percent.
30y mortgage rates
30y mortgage rates have risen to highest since 2009
Economic Data Due Tomorrow on 5-5-2022
United States Unemployment Rate
United States Non Farm Payrolls
United States Labor Force Participation Rate
United States Average Hourly Earnings MoM
Get the In the Know - End of Day Market Wrap
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