Stock market today: stocks, bonds, crypto and more

the S&P500 fell to its lowest point in more than a year on Monday as last week’s selloff maintained full momentum and spread through just about everything that trades.

Interest rate concerns continued to be the main driver of the selloff. The 10-year Treasury briefly touched 3.2% today and, even after returning to 3.06%, it is still around levels last seen in 2018.

“Interest rates are a hammer, not a scalpel – they are blunt tools designed to move slowly and with great force, rather than in precise fashion,” says Andy Kapyrin, co-chief investment officer at the advisory firm. in registered investment RegentAtlantic. “The Fed waves the interest rate hammer and financial markets react to the aftershocks.”

Technology (-3.9%) and consumer discretionary (-4.3%) were among the usual suspects in a trading day that saw each of the S&P 500’s 11 stock sectors end in the red. But it was a sell-off that went well beyond stocks and bonds.

U.S. crude oil futures, for example, cratered 6.1% to $103.09 a barrel amid lingering fears that China’s strict COVID-19 lockdowns will weigh on oil prices. In effect, energy (-8.3%) was the worst performing sector on Monday, with even blue chips like Exxon Mobil (XOM, -7.9%) and Chevron (CVX, -6.7%) taking it on the chin.

Gold futures? A bad day too, down 1.3% to $1,858.60 an ounce as investors piled into the US Dollar.

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Cryptocurrencies also failed to provide security. Bitcoinwhich fell as low as $30,375 and finished down 13.4% at $31,153, is now down more than 50% from its November 2021 high. (Bitcoin trades 24 hours a day; prices shown here are at 4 p.m.)

Edward Moya, senior market strategist at currency data provider OANDA, notes that institutional buyers are starting to pay close attention to Bitcoin, given that many who entered 2021 are now losing money on their investment. “If the $30,000 level breaks, it could trigger a flash crash environment if multiple whales unload,” he says.

the Nasdaq Compound (-4.3% to 11,623) is back in bearish territory, down nearly 28% from its January highs. the S&P500 (-3.2% to 3,991 – its lowest close since March 31, 2021) needs to lose around another 4% before entering a bear market, while the Dow Jones Industrial Average (-2.0% to 32,245) is expected to decline a further 9%.

Other news on the stock market today:

  • Small cap Russell 2000 fell 4.2% to 1,762.
  • Palantir Technologies (PLTR) fell 21.3% after the data analytics firm reported first-quarter earnings per share that fell short of expectations (2 cents actual vs. 4 cents estimated). The company also gave a current quarter guidance that was lower than Wall Street estimates, adding that there are “a wide range of potential upsides to our guidance, including those driven by our role in responding to geopolitical events in development”. A key note to PLTR’s financial results was its first-quarter revenue of $446.4 million, up 31% year-over-year and above the average estimate.
  • Rivian Automotive (RIVN) fell 20.9% after sources told CNBC that Ford engine (F, -5.9%) will sell 8 million shares of RIVN after the electric vehicle maker’s insider lock-in period expires on Sunday. The news also drags on Amazon.co.uk (AMZN, -5.2%), which owns about 158.4 million shares of RIVN, according to S&P Global Market Intelligence. “The news comes as no surprise to us, especially after the two companies ended a partnership to jointly develop an electric vehicle last November and as Ford begins deliveries of the F-150 Lightning, a direct competitor to Ford’s R1T pickup truck. Rivian,” the CFRA Research analyst said. Garrett Nelson, who maintained a Hold rating on EV stock.

The strongest parts of a weak market

Green ink was shockingly rare on Monday – but relative success was found among the usual suspects.

“This meltdown should continue the rotation into defensive, dividend-paying stocks,” says Jay Hatfield, chief investment officer at ETF manager Infrastructure Capital Management.

Among those beneficiaries were consumer staples, which were only slightly lower on Monday, and utilities, second best with a 0.8% decline, Hatfield said.

Among their greatest qualities right now is what is sure to be a common refrain in short-term investment advice: pricing power. In short, as inflation continues to advance unhindered, the companies best able to impose most of these prices on consumers should fare the best – and even if your average American may spend a few more months without taking a vacation or buying a new pair of Nikes, they are unable to afford much basic necessities such as food and electricity.

Read on as we take a look at a number of stocks with exceptional pricing power – as well as several names that, while good companies in their own right, will have an uphill battle as long as inflation remains blank.

Garland K. Long