The Nasdaq joined the S&P 500 in bear market territory
Investor sentiment once more turned sour on Thursday. Concerns surrounding the Federal Reserve’s aggressive interest rate hikes took hold, and fears of an economic recession settled in. Lackluster economic data pressured stocks lower as well. The Dow shed 741 points -- breaching the 30,000 level for the first time in over a year -- while closing at its lowest level since December 2020. Meanwhile, the Nasdaq joined the S&P 500 in official bear market territory as the tech sector sold off.
Continue reading for more on today's market, including:
- Options bears flock to Lennar stock before earnings.
- It's not looking good for United Parcel Services stock.
- Plus, one stock immune to inflation; new coverage on media stock; and more on Kroger's beat-and-raise.
The Dow Jones Average (DJI - 29,927.07) shed 741.5 points, or 2.4%, for the day. Walmart (WBA) led the gainers, adding 1%. American Express (AXP), meanwhile, paced the laggards with a 6% drop.
The S&P 500 Index (SPX - 3,666.77) lost 123.2 points, or 3.3% for the day. Meanwhile, the Nasdaq Composite (IXIC - 10,646.10) fell 453.1 points, or 4.1% for the session.
Lastly, the Cboe Market Volatility Index (VIX - 32.95) rose 3.3 points, or 11.2% for the day.
5 Things to Know Today
- American Airlines (AAL) and other airline stocks pummeled today, with inflation fears and the risk of recession overshadowing summer travel demand. (CNBC)
- A Food and Drug Administration (FDA) panel gave the green light for children under 5 to get the Moderna (MRNA) or Pfizer (PFE) Covid-19 shot. (MarketWatch)
- Morgan Stanley turned bullish on Dollar General stock.
- Warner Brothers Discovery stock sank on fresh analyst coverage.
- Kroger brushed off inflationary pressures with a beat-and-raise.
Oil Prices Settle Higher After New Sanctions
Oil prices were higher on Thursday, reversing earlier losses. Boosting black gold was news that the U.S. Treasury Department sanctioned petrochemical producers in Iran, and other "front companies" overseas involved in the sale of Iranian petrochemicals. July-dated crude rose $2.27, or 2%, to settle at $117.58 per barrel.
Gold prices settled higher as well for a second-straight day, as investors flocked to the safe-haven commodity amid a weakening dollar. August-dated added $30.30, or 1.7%, to close at $1,849.90 an ounce.