U.S. stock futures are down this morning on renewed inflation fears — and more in Wednesday’s stock market recap.
The 10-year Treasury yield also bounced after the latest Consumer Price Index data — which saw October’s consumer prices jump the most since 1990 — was announced. More on that below…
Rising rates discount the value of future earnings, which typically hurts high-flying tech stocks most.
Tech names are drifting lower this morning in premarket trading. Names like Nvidia Corp. (Nasdaq: NVDA) were down more than 3%. Facebook parent Meta Platforms Inc. (Nasdaq: FB) fell 1%, while the sell-off in Tesla Inc. (Nasdaq: TSLA) continued, down 2% this morning after falling 12% on Tuesday.
Stock Market Recap: By the Numbers
This morning’s stock market futures recap:
- Indicated close: 36,319.98
- Futures: 36,150
- Change: -58
S&P 500 (mini)
- Indicated close: 4,685.25
- Futures: 4,663.5
- Change: -15
- Indicated close: 16,219.93
- Futures: 16,109
- Change: -101.43
- Indicated close: 2,427.29
- Futures: 2,419.9
- Change: -6.9
Note: Updated as of 9:01 a.m.
Roger’s Radar: Inflation Fears Ramp up on Surging CPI Data
On my radar today is the put/call ratio falling below 70, which is its lowest level in almost a year.
The Department of Labor also reported this morning that the latest Consumer Price Index surged at its fastest pace in 30 years, rising 6.2% over the past 12 months!
The consumer price index jumped 6.2% from a year ago, well above the 5.9% estimate from economists polled by Dow Jones and the largest annual increase since 1990. On a monthly basis, the CPI increased 0.9% against the 0.6% estimate. The CPI is a basket of products ranging from gasoline and health care to groceries and rents.
“Wednesday’s Consumer Price Index showed another month of inflation data well above the Federal Reserve’s inflation target, primarily due to continued supply chain issues and labor shortages. If inflation doesn’t subside, the Federal Reserve may need to taper at a more substantial rate and hike interest rates, which could hurt stocks and bonds,” Quadratic Capital Management founder Nancy Davis said.
In this morning’s stock market recap video, you’ll discover whether stocks are set to rise or fall from here… which industry is seeing the most technical pressure… an update on the long bond with full trade analysis… an update on the biggest Federal Reserve report coming out Wednesday… a roadmap for market internals… an actionable long trade complete with risk level and profit target… and an actionable short trade complete with risk level and profit target.
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This market is filled with so many catalysts, and researching it is getting harder… especially as we approach the end of 2021. There’s never been a better time to have a structured approach to trading stocks.
Building on the sector analysis from Tuesday, I’ll take things a step further every Wednesday with two FREE trade alerts! I’ll identify my favorite stock in the strongest sector, and even a short opportunity from the weakest sector. That’s two trades… absolutely free… each week!
Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.