We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. stocks ended sharply lower on Thursday as investors worried about the state of the economy ahead of the release of the key inflation report. All the major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slipped 1.9% or 638.11 points to end at 32,272.79 points.
The S&P 500 declined 2.4% or 97.95 points to finish at 4,017.82 points. Communication, technology and financial stocks were the worst performers
The Communication Services Select Sector SPDR (XLC) shed 3.1%. The Technology Select Sector SPDR (XLK) and the Financials Select Sector SPDR (XLF) declined 2.7% and 2.5%, respectively. All the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq tumbled 2.8% or 332.05 points to close at 11,754 points. All the three indexes recorded their worst daily percentage declines since May 18.
The fear-gauge CBOE Volatility Index (VIX) was up 8.89% to 26.09. Decliners outnumbered advancers on the NYSE by a 5.51-to-1 ratio. On Nasdaq, a 2.79-to-1 ratio favored declining issues. A total of 11.50 billion shares were traded on Thursday, lower than the last 20-session average of 12.07 billion.
Stocks Slide on Inflation Worries
Investors have been worrying ahead of the release of the May consumer-price index report. They are now nervous about a potential economic slowdown in the wake of the Fed’s aggressive stance toward tightening the monetary policy to check surging inflation.
On Thursday, worries grew further ahead of Friday morning’s release of the key inflation data. Investors are almost sure that the consumer-price index will reflect a massive jump for May. The yearly rate fell slightly in April to 8.3% but prior to that, the March reading of 8.5% was the highest in four decades.
Rising costs have been crippling industries. Moreover, supply disruption owing to the pandemic and the ongoing war between Russia and Ukraine has already pushed up prices. Oil prices are at a three-month high, which pushing transportation costs, that are biting into the profits of manufacturers and retailers
These fears once again unsettled investors who went for a massive selloff on Thursday during the end of the trading session. Mega-cap tech stocks were the biggest sufferers, with shares of Meta Platforms, Inc. (META - Free Report) tumbling 6.4%. Also, shares of Amazon.com, Inc. (AMZN - Free Report) declined 4.1%, while Apple, Inc (AAPL - Free Report) fell 3.6%. Meta Platforms has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
Economic data released on Thursday also wasn’t impressive Initial jobless claims rose to 229,000, increasing 27,000 for the week ending Jun 4, the Labor Department said. This is the highest level since Jan 15. The four-week moving average also increased to 215,000, an increase of 8,000 from the previous week’s revised average of 207,000.
Continuing claims came in at 1,306,000, unchanged from the previous week’s revised level, the lowest level since December 1969. The previous week's numbers were revised down by 3,000 from 1,309,000 to 1,342,000. The 4-week moving average came in at 1,317,500, a decrease of 9,000 from the previous week's revised average.
A separate report showed that the net worth of total U.S. households declined $5.4 billion to $149.2 trillion.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stock Market News for Jun 10, 2022
U.S. stocks ended sharply lower on Thursday as investors worried about the state of the economy ahead of the release of the key inflation report. All the major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slipped 1.9% or 638.11 points to end at 32,272.79 points.
The S&P 500 declined 2.4% or 97.95 points to finish at 4,017.82 points. Communication, technology and financial stocks were the worst performers
The Communication Services Select Sector SPDR (XLC) shed 3.1%. The Technology Select Sector SPDR (XLK) and the Financials Select Sector SPDR (XLF) declined 2.7% and 2.5%, respectively. All the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq tumbled 2.8% or 332.05 points to close at 11,754 points. All the three indexes recorded their worst daily percentage declines since May 18.
The fear-gauge CBOE Volatility Index (VIX) was up 8.89% to 26.09. Decliners outnumbered advancers on the NYSE by a 5.51-to-1 ratio. On Nasdaq, a 2.79-to-1 ratio favored declining issues. A total of 11.50 billion shares were traded on Thursday, lower than the last 20-session average of 12.07 billion.
Stocks Slide on Inflation Worries
Investors have been worrying ahead of the release of the May consumer-price index report. They are now nervous about a potential economic slowdown in the wake of the Fed’s aggressive stance toward tightening the monetary policy to check surging inflation.
On Thursday, worries grew further ahead of Friday morning’s release of the key inflation data. Investors are almost sure that the consumer-price index will reflect a massive jump for May. The yearly rate fell slightly in April to 8.3% but prior to that, the March reading of 8.5% was the highest in four decades.
Rising costs have been crippling industries. Moreover, supply disruption owing to the pandemic and the ongoing war between Russia and Ukraine has already pushed up prices. Oil prices are at a three-month high, which pushing transportation costs, that are biting into the profits of manufacturers and retailers
These fears once again unsettled investors who went for a massive selloff on Thursday during the end of the trading session. Mega-cap tech stocks were the biggest sufferers, with shares of Meta Platforms, Inc. (META - Free Report) tumbling 6.4%. Also, shares of Amazon.com, Inc. (AMZN - Free Report) declined 4.1%, while Apple, Inc (AAPL - Free Report) fell 3.6%. Meta Platforms has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
Economic data released on Thursday also wasn’t impressive Initial jobless claims rose to 229,000, increasing 27,000 for the week ending Jun 4, the Labor Department said. This is the highest level since Jan 15. The four-week moving average also increased to 215,000, an increase of 8,000 from the previous week’s revised average of 207,000.
Continuing claims came in at 1,306,000, unchanged from the previous week’s revised level, the lowest level since December 1969. The previous week's numbers were revised down by 3,000 from 1,309,000 to 1,342,000. The 4-week moving average came in at 1,317,500, a decrease of 9,000 from the previous week's revised average.
A separate report showed that the net worth of total U.S. households declined $5.4 billion to $149.2 trillion.