Stock markets open: The Dow falls by more than 60 points
The US stock markets opened today with investors keeping an eye on the latest economic data and companies’ financial reports. The Dow fell by 57 points while the S&P 500 index dropped by 0.01%. However, the Nasdaq rose by 0.03%. Coinbase saw a rise of more than 15% due to its strong performance. Many tech stocks also saw an increase, with electric car companies rising by over 5% and software companies rising by over 4%. On the other hand, DoorDash fell by 12% and Dropbox fell by 19%, both reporting their largest declines in years.
In other news, the US Labor Department reported that the Producer Price Index (PPI) for January rose by 0.3%, higher than expected. The PPI for final demand goods and services rose by 0.9%, surpassing the estimated increase of 0.6%. This indicates a higher demand for goods and services, which could impact the overall economy.
The Federal Reserve’s Vice Chairman Richard Clarida said that the Fed’s battle against inflation is not yet over, despite the strong labor market and economy. He also stated that the Fed’s goal of achieving a 2% inflation target is still unclear, despite the higher-than-expected increase in the Consumer Price Index (CPI) in January.
The stock market’s dynamics are still strong, with investors shifting their focus from tech stocks to more traditional stocks. The market has seen a silent reshuffling of assets, with investors cautious about their next move.
Meanwhile, several US banks have rapidly accumulated commercial real estate loans, surpassing the threshold for strict supervision by federal regulators. This indicates increased pressure on the banks amid the ongoing market volatility.
In another development, the Fed has seen a reversal of its surplus reserves, dropping below the $500 billion mark for the first time in over two years. This has heightened the volatility in the market, signaling increased risk.
Jupiter Asset Management has significantly increased its holdings of US Treasury bonds to record levels and predicts that the US will see a significant drop in benchmark interest rates.
A report by the Japan Bank predicts a negative interest rate within the next few months as the central bank seeks to accelerate capital growth. While domestic demand is still weak, the central bank is hopeful about the economic growth trend.
In the tech sector, Coinbase saw a significant increase in its earnings and profits, surpassing market expectations.
On the mobile market, there was a steady demand for mid-range smartphones, but Apple’s iPhone sales remained stable, contributing steadily to the overall revenue growth.
Tesla CEO Elon Musk responded to reports of a 20.5% increase in his stock holdings, denying any such increase and labeling the reports as a misinterpretation.
Lastly, a sports nutrition company, H&H International Investment, LLC, reported an increase in its investment account, showing a rise in Apple shares. The account now holds a market value of $14.5 billion, with Apple shares accounting for $114.98 billion, making up the majority of the holdings.
In conclusion, the stock market continues to see fluctuations, with certain sectors showing growth while others face challenges. It is important for investors to exercise caution and closely monitor market trends.
Please note that the content in this article is for informational purposes only and does not constitute any investment advice. Stock markets involve risks, and investors should proceed with caution.