(Bloomberg) — U.S. stocks plunged as investors grappled with data that vindicated the Federal Reserve’s assertion that the economy is strong enough to withstand further pressure.
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The S&P 500 fell more than 2%, and about 98% of its stocks were down. The tech-heavy Nasdaq 100 fell 3.7%. It’s a bold vision from chipmaker Micron Technology Inc. it knocked its shares and weighed on both indices. The company’s warning countered some optimism fueled on Wednesday by data showing U.S. consumer confidence at an eight-month high and further lowering of price expectations. .
CarMax Inc. also fell. after reporting earnings that fell below expectations, deepening concerns about a weakening US auto market. Got the news.
The latest US data on Thursday showed a stable economy, prompting concern that the Fed has a long way to go to restore inflation. Initial jobless claims rose less than a dollar in the week ended Dec. 17, underscoring strength in the labor market. Third-quarter gross domestic product rebounded to 3.2% – compared to 2.9% previously reported – on spending.
“It’s quite interesting to see the markets moving on the third GDP release. We have received this information several times, it is a big change,” said Veronica Clark, Citigroup Inc. economist, on Bloomberg Television. “Markets are expecting to see lower rates of now and we’re not getting it.”
The bearish comments came from economist David Tepper, who told CNBC that he is “reliable” on the U.S. economy next year because global strengthening, adding to the negative sentiment on Thursday.
The S&P 500’s biggest decline this month compares with the average 1.5% December gain since 1950, leaving global investors with four major “dry losses” action, according to analysts at SEB.
Meanwhile there are growing concerns that Japanese investors may be forced to bring home some of the millions of dollars they have stashed away in foreign stocks and bonds as the yen and bonds rise in the country because of this week’s hawkish pivot from the Bank of Japan. That could further increase the cost of global borrowing and drag on the economic growth that has ended, with the bonds of the Euro being the weakest.
Highlights of this week’s events:
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US consumer income, new home sales, US consumer goods, PCE firm, University of Michigan consumer sentiment, Friday
Some of the main activities in the market:
Sharing
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The S&P 500 fell 2.5% at 12:49 pm New York time
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The Nasdaq 100 fell 3.6%
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The Dow Jones Industrial Average fell 2%
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The MSCI World index rose 1.2%
Money
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The Bloomberg Dollar Spot Index rose 0.2%
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The euro fell 0.2% to $1.0586
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The British pound fell 0.5% to $1.2026
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The Japanese yen was little changed at 132.34 to the dollar
Cryptocurrencies
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Bitcoin fell 1.2% to $16,596.19
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Ether fell 2.1% to $1,186.06
obligation
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The yield on 10-year Treasuries was little changed at 3.66%
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Germany’s 10-year yield rose five basis points to 2.36%
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Britain’s 10-year yield rose two basis points to 3.59%
Products
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West Texas Intermediate fell 0.7% to $77.73 a barrel
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Gold futures fell 1.3% to $1,802.50 an ounce.
This article was produced with the help of Bloomberg Automation.
–With assistance from Cecile Gutscher, Rheaa Rao and Peyton Forte.
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