ECONOMIC SILUET: S&P 500, Nasdaq fall for a third day | Consumer prices rose 8.5% in March | Where Jeffrey Gundlach is putting money to work

Selasa, 12 April 2022

S&P 500, Nasdaq fall for a third day | Consumer prices rose 8.5% in March | Where Jeffrey Gundlach is putting money to work

TUE, APR 12, 2022

EVENING BRIEF

AS OF TUE, APR 12, 2022 • 04:58 ET

DJIA		34220.36
		-0.26%	-87.72

S&P 500		4397.45
		-0.34%	-15.08

NASDAQ		13371.57
		-0.30%	-40.38

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	167.66	+1.91	+1.15%
MSFT	282.06	-3.20	-1.12%
INTC	46.50	-0.07	-0.15%

S&P 500
NAME	LAST	CHG	%CHG
T	19.56	-0.07	-0.36%
AMD	95.10	-2.27	-2.33%
AAPL	167.66	+1.91	+1.15%

NASDAQ
NAME	LAST	CHG	%CHG
AMD	95.10	-2.27	-2.33%
AAPL	167.66	+1.91	+1.15%
NVDA	215.04	-4.13	-1.88%

EDITOR'S NOTE

An early morning bounce in stocks gave way to selling on Tuesday, after the consumer price index showed the highest jump in inflation since 1981.

The Dow Jones Industrial Average lost 87.72 points, or 0.26%. The S&P 500 dropped 0.34%, while the Nasdaq Composite declined 0.30%. Tech stocks continued to take a beating due to the prospect of higher interest rates.

Consumer prices for March increased 1.2% month-to-month and 8.5% annually, the Labor Department said on Tuesday. The high headline numbers raised investor expectations of tighter monetary policy from the Federal Reserve, which could slow the economy.

"I think the Fed has to continue at least 50-basis-point hikes for a number of meetings," Wharton School finance professor Jeremy Siegel said on CNBC's "Halftime Report" on Tuesday. One basis point equals 0.01 percentage points.

"The Fed really has to get above 3%, 3.5% if it wants to slow the inflation, which I still think is moving through the system," Siegel said.

The benchmark 10-year Treasury yield retreated from a three-year high after the core inflation report. Indeed, core CPI, which excludes food and energy costs, gained 0.3% in March, which is less than the 0.5% estimate.

Tech stocks took a hit despite rising higher earlier in the day. Microsoft dropped 1.1%, and Nvidia declined nearly 1.9%. The tech-heavy Nasdaq is down more than 5% this month, as investors sell growth names amid rising rates.

Investors are also awaiting the start of earnings season set to kick off Wednesday with JPMorgan and Delta Air Lines, followed by several big banks on Thursday.