The S&P 500 Index ($SPX) (SPY) on Thursday closed down -1.23%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -1.20%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -1.38%. March E-mini S&P futures (ESH26) fell -1.23%, and March E-mini Nasdaq futures (NQH26) fell -1.40%.
Stock indexes extended this week’s sell-off on Thursday, with the S&P 500 falling to a 1.5-month low and the Nasdaq 100 dropping to a 2.5-month low. The sell-off in technology stocks persists, with Qualcomm falling more than -8% to lead chip stocks lower after it forecasted weaker-than-expected Q2 revenue. Also, cybersecurity stocks sold off on Thursday, led by a 9% decline in CrowdStrike Holdings.
Losses in stocks accelerated on Thursday by signs of weakness in the US labor market after Challenger’s January job cuts rose +117.8% y/y to 108,435, the largest amount of job cuts for a January since 2009. Also, weekly initial unemployment claims rose by +22,000 to an 8-week high of 231,000, showing a weaker labor market than expectations of 212,000. In addition, the US Dec JOLTS job openings unexpectedly fell by -386,000 to a 5.25-year low of 6.542 million, versus expectations of an increase to 7.250 million.
Fed Governor Lisa Cook said she supported last week’s Fed decision to hold interest rates steady because she now sees “risks as tilted toward higher inflation.” She added that, “After nearly five years of above-target inflation, it is essential that we maintain our credibility by returning to a disinflationary path and achieving our target in the relatively near future.”
Bitcoin (^BTCUSD) plunged more than -12% on Thursday to a 1.25-year low as negative momentum deepened across cryptocurrencies. Bitcoin is down nearly 50% from its October record high, and inflows into US spot Bitcoin ETFs have reversed, with about $2 billion coming out of Bitcoin ETFs over the past month and more than $5 billion pulled out over the past three months, data compiled by Bloomberg show.
The markets this week will focus on earnings and economic news. On…
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