It was a volatile week in the markets as investors reacted to corporate earnings, Federal Reserve (Fed) moves, inflation concerns, and jobless claims. The 10-year Treasury yield surged 21 basis points to 3.74% while the Dow Jones Industrial Average edged down 0.2%. The Nasdaq Composite lost 2.4% while the small-cap Russell 2000 shed 3.4%.[0]
Following its quarterly earnings report, which included a bleak outlook, shares of Lyft (LYFT) drastically decreased. The company declared that it would reduce its workforce, joining a multitude of other tech businesses that have eliminated thousands of positions.[1] Among stocks that are being actively traded, Lyft (LYFT) experienced a sharp decline due to
Monday saw US stocks decline as speculation of a more forceful stance from the Federal Reserve drove up bond yields.[2] The 10-year Treasury yield increased by five basis points to 3.68%.[3] When Treasury prices rise, yields decrease and vice versa.[3]
The number of first-time unemployment filings in the U.S. increased by 13,000 to a total of 196,000 in the past week, indicating a weaker labor market than anticipated at 190,000.[4] Weekly continuing claims increased by 38,000 to 1.688 million, which is a weaker labor market than the anticipated 1.660 million.[5]
At the close of trading, the tech-dominated Nasdaq Composite (COMP.IND) had decreased by 0.84% to 11,691.11 points, with FAANG stocks all slipping.[6]
In this article, we explore the implications of these market movements. We examine the performance of FANG stocks, cryptocurrencies, inflation, and the Dow Jones futures. We also look at the risks associated with foreign exchange trading and the importance of seeking independent advice before investing.[7]
0. “Dow Jones Futures: Market Rally Pullback Continues; What To Do As Inflation, Tesla Data Loom | Investor’s Business …” Investor’s Business Daily, 12 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/market-rally-has-first-real-pullback-cpi-inflation-report-looms-large-tesla-stock/
1. “Stocks end mostly higher, but S&P 500, Nasdaq book worst weekly losses since December” MarketWatch, 10 Feb. 2023, https://www.marketwatch.com/story/u-s-stock-futures-point-to-another-down-day-on-wall-street-amid-earnings-disappointment-e26059bc
2. “Stocks close lower Monday as higher rates rattle investors” CNBC, 5 Feb. 2023, https://www.cnbc.com/2023/02/05/stock-futures-slide-to-start-week-with-more-earnings-and-a-powell-speech-ahead.html
3. “Dow Rockets 250+, Clawing Back Some of its Declines” InvestorsObserver, 13 Feb. 2023, https://www.investorsobserver.com/news/qm-news/8244349936548762
4. “Stocks Relinquish Early Gains and Close Lower as Bond Yields Climb” Barchart, 9 Feb. 2023, https://www.barchart.com/story/news/14072296/stocks-relinquish-early-gains-and-close-lower-as-bond-yields-climb
5. “Markets Today: Stocks Climb on Positive Earnings Results and Lower Bond Yields” Barchart, 9 Feb. 2023, https://www.barchart.com/story/news/14057174/markets-today-stocks-climb-on-positive-earnings-results-and-lower-bond-yields
6. “Stock market news today: Rising interest rates help spoil early gains” Markets Insider, 9 Feb. 2023, https://markets.businessinsider.com/news/stocks/stock-market-news-today-rising-interest-rates-highest-level-november-2023-2
7. “Modestly higher opening for the US stock indices” ForexLive, 13 Feb. 2023, https://www.forexlive.com/news/modestly-higher-opening-for-the-us-stock-indices-20230213/