US Markets Plunge as Inflation Concerns Intensify
A 5-minute read of yesterday's US session and today's catalysts — what to watch before pre-market opens at 21:30 HKT.
TL;DR
The US markets experienced a significant downturn, with the S&P 500 dropping -1.62% to 7,266.99 and the Nasdaq 100 plummeting -1.98% to 28,508.03. The Dow Jones also fell -1.87% to 49,918.78. The VIX surged +11.83% to 22.22, indicating increased market volatility.
Today's session will be closely watched for any signs of a rebound or further decline. Investors will be keeping an eye on the 10Y Yield, which rose +0.31% to 4.54, and WTI Crude, which jumped +4.63% to 92.28.
US Session Recap
| Index/Asset | Close | Change | Note |
|---|---|---|---|
| S&P 500 | 7,266.99 | -1.62% | |
| Nasdaq 100 | 28,508.03 | -1.98% | |
| Dow Jones | 49,918.78 | -1.87% | |
| Russell 2000 | 2,835.46 | -1.10% | |
| VIX | 22.22 | +11.83% | |
| 10Y Yield | 4.54 | +0.31% | |
| WTI Crude | 92.28 | +4.63% |
Top large-cap movers
NVDA fell -3.73% to 200.42, while AAPL rose +0.35% to 291.58. TSLA dropped -3.80% to 381.59, and AVGO plummeted -5.12% to 372.10.
Spotlight
| Metric | Value |
|---|---|
| S&P 500 Close | 7,266.99 |
| VIX Close | 22.22 |
| 10Y Yield Close | 4.54 |
The S&P 500 closed at 7,266.99, with the VIX surging to 22.22. The 10Y Yield rose to 4.54, indicating increased inflation concerns. These metrics will be closely watched in today's session for any signs of a rebound or further decline.
Macro & Fed
- Current policy rate: 4.50%-4.75%
- 10Y Yield: 4.54
- Today's data releases:
- 08:30 HKT: Initial Jobless Claims
- 10:00 HKT: Wholesale Inventories
Geopolitics & Global
- Ongoing tensions between the US and China
- Rising concerns over global inflation
- Potential impact of the US presidential election on markets
Earnings — What to Watch
| When | Ticker | What to look for |
|---|---|---|
| After Market Close | ORCL | Q4 earnings and revenue guidance |
| Before Market Open | KSS | Q1 earnings and same-store sales |
Stocks Worth Watching
- AAPL: Potential impact of new product releases on earnings
- MSFT: Cloud computing growth and competition from AMZN
- NVDA: GPU demand and competition from AMD
- TSLA: Electric vehicle demand and production updates
- GOOGL: Advertising revenue growth and competition from META
What Could Break the Tape
A further increase in the 10Y Yield could lead to a decline in stock prices, as higher interest rates make borrowing more expensive and reduce consumer spending.
A strong earnings report from a major company, such as AAPL or MSFT, could boost investor confidence and lead to a rally in the markets.