Why the stock market is suddenly freaking out CNN Business
Looking ahead, Gregory Daco, chief economist at EY-Parthenon, predicts the markets will remain in a period of “extreme volatility” — especially with more tariff developments expected. “I think we should refrain from assuming that we’ve passed the worst in terms of trade policy announcements,” he said. U.S. stock futures are pointing sharply higher as investors react to President Donald Trump’s announced delay of European Union (EU) import tariffs. Nasdaq futures are 1.6% higher after the tech-heavy index dropped by 2.5% last week. S&P 500 futures and Dow Jones Industrial Average futures are up 1.5% and 1.3%, respectively.
- Ben Emons, Strategic Fortune Wealth senior investment executive and FedWatch Advisors Founder & CIO, joins ‘Fast Money’ to talk today’s market bounce.
- Prices for electronics and toys sold online dropped by the largest amount.
- Consumer confidence unexpectedly jumped to 98 in May, well above forecasts of 87.1, The Conference Board reports.
- Yields and bond prices have an inverse relationship, so as yield increase, bonds decrease, often a sign of diminishing confidence among investors.
- Market uncertainty and muted returns in 2025 make portfolio stability and income reliability crucial; dividend stocks are key for navigating volatility.
“Old-Fashioned” Technical Analysis Points To Caution
The stock market today is a dynamic, ever-shifting landscape, and keeping abreast with its movements is crucial for informed decision-making. From market today updates to deeper dives into specific stocks, the importance of staying updated cannot be stressed enough. Whether you’re an active trader or someone simply keeping tabs on their retirement portfolio, a timely market update can be the difference between capitalizing on an opportunity and missing out.
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Consumer confidence spiked, but only from pandemic lows, and underlying eco… Those fears extended globally, with Japan’s Nikkei 225 plunging 5.8% Friday, the index’s biggest daily drop since March 2020. Meanwhile, a House Republican spending bill currently being shepherded through Congress is projected to add trillions to the nation’s debt.
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Economists had expected prices to increase 8.7% annually and 0.2% between June and July. Schlumberger (SLB), Halliburton (HAL) and Coterra Energy (CTRA) were all in the red Wednesday morning. Even though inflation cooled off considerably in July, the cost of living remains uncomfortably high and may not get back to normal levels anytime soon. “It’s highly Forex timeframe unlikely they would say the US is in recession now given the strength of the jobs market,” he said, adding that the poor GDP reports were largely driven by inventory drawdowns. The consumer price index for July rose 8.5% year-over-year, and was flat compared to June.
Belski thinks inflation pressures will take time to ebb and that investors shouldn’t expect prices to fall as quickly as they soared. That said, he is encouraged by the fact that commodity costs are starting to decline and supply chain issues are abating. The upward move was bolstered by a strong key inflation report which showed a better-than-expected slowdown for prices in the United States. Even before the new tax bill, the CBO was projecting that the debt-to-GDP ratio could reach a record high of 150% of GDP within the next 10 years. With interest rates still high, interest costs to service the existing debt are becoming a larger burden to the budget.
The stock market today showcases a myriad of activities with stocks surging, plummeting, or trading flat. From blue-chip companies to emerging start-ups, there’s always a story javascript candlestick chart unfolding in today’s market. Whether you’re looking to capitalize on a bullish trend or safeguard your portfolio against potential losses, being aware of the current market scenario can be your game changer.
Trump Media & Technology Group (DJT) shares surged by nearly 9% in premarket trading after a report that the Truth Social parent looked to raise as much as $3 billion for cryptocurrency investments. The Financial Times reported that Trump Media was seeking $2 billion in equity and $1 billion through convertible bonds to fund the cryptocurrency purchases. Economists surveyed by Reuters are forecasting that consumer prices rose 8.7% over the past 12 months. That is still an historically high level but it would be a slowdown from the 9.1% increase through June.
- The three stocks are still down sharply this year, but investors are apparently betting that the worst may be over.
- Eric Winograd, AllianceBernstein chief economist, joins Catalysts host Julie Hyman and…
- But the Federal Reserve still may need to keep aggressively raising rates, despite the slowdown in inflation.
- A report last week on second-quarter gross domestic product, the broadest measure of the US economy, was particularly robust, showing consumer spending resilience.
- Meanwhile, a House Republican spending bill currently being shepherded through Congress is projected to add trillions to the nation’s debt.
This Former Warren Buffett AI Stock Was a Market Darling in 2020, but Is Down 50% Today. Should Investors Buy the Dip?
Roblox isn’t the only video game company that’s getting hit by growing fears of a weakening economy. Grand Theft Auto maker Take-Two Interactive (TTWO), which recently bought mobile gaming company Zynga, also disappointed Wall Street with its latest results, The stock fell 4% Tuesday on the news. Norwegian (NCLH), Royal Caribbean (RCL) and Carnival (CCL) all rose more than 10%. The three stocks are still down sharply this year, but investors are apparently betting that the worst may be over.
Investors appear to be forgetting that the full impact of even reduced tariffs has yet to be felt. Rich Saperstein, Treasury Partners founding principal and CIO, joins ‘Closing Bell’ to discuss how to play equity markets into the summer. New York Federal Reserve President John Williams said on Wednesday central banks must “respond relatively strongly” when inflation begins to deviate from their target.
How major US stock indexes fared Wednesday, 5/7/2025
A combination of tax hikes and spending cuts or potential adjustments to entitlement programs, such as Social Security, are likely. A review of the historical relationship between bond yields and debt levels for large-advanced economies reveals that a rising debt/GDP ratio has not coincided with higher bond yields, and in fact it’s been the opposite. That is not downplaying the need for fiscal restraint, but it appears to highlight the importance of considering the economic growth and Fed policy regimes that are still the primary driver of yields. Wall Street sprinted back from last week’s slump on Tuesday, fueled by Trump’s trade policy spin cycle, a jolt in consumer confidence, and falling bond yields. A report last week on second-quarter gross domestic product, the broadest measure of the US economy, was particularly robust, showing consumer spending resilience. Housing data is starting to show some signs of improvement, including mortgage rates tumbling to their lowest levels since February on Thursday.
A rising valuation would be more understandable if there were less economic uncertainty. The divergence between major indices, like S&P 500 and Russell 2000, signals caution and often precedes significant market corrections. Current divergence—S&P 500 near highs while Russell 2000 lags—mi… Last week, the Index peaked and bottomed at the exact levels forecasted two weeks ago. Contingent on holding above last week’s low, we now expect it to reach at least $22200.
Two days earlier, Trump threatened to hit the region with a 50% across-the-board tariff plus500 canada June 1, citing stalled trade negotiations. Markets priced in inflationary concerns that might affect the Federal Reserve’s monetary policy after President Donald Trump reiterated that tariffs on imports from Canada and Mexico will go forward as scheduled. Apple rose 0.6% after announcing plans to invest $500 billion in the United States over the next four years and hire 20,000 new people. Looking ahead, investors are anticipating earnings reports this week, as well as the release of the PCE index, the Federal Reserve’s favored measure of inflation. Focus came on Home Depot’s results for clues to the Trump tariff fallout after retail giant Walmart (WMT) warned last week that it will have to push up prices.
We expect a modestly stimulative fiscal policy supporting growth but also feeding into deficit concerns. However, we would highlight that the final bill could look very different than the House version that was just passed. This is likely the start of a long process, with Congress setting a goal of a final bill signed into law on July 4. Since the US and China struck a deal to temporarily roll back tariffs last week, markets have been shaking off fears of a trade war and enjoying a rally.