US stocks tumble for a second day as mood sours
2024-04-16
Summary:
Asian stocks fell on strong US retail sales, boosting the dollar to over five-month highs. US stocks plunged, hitting a six-month volatility peak.
Asian stocks fell as strong US retail sales sent the dollar to more than five-month highs on Tuesday. US stocks closed sharply lower overnight with volatility hitting a six-month peak.
Megacap TMT stocks, including Microsoft, Apple and Alphabet, were among the biggest fallers on Monday. Treasuries kept falling, as opposed to gold that has rocketed this year.
The NASDAQ 100 saw a hefty loss of 32.4% in 2022 when expensive stocks were hit the hardest amid surging inflation fears. The risk-off mood is throwing the party after peak interest rates into tailspin again.
The S&P 500 was down 2.64% over the past two sessions, its biggest two-day drop since early Mar 2023, as tensions flare up in the Middle East and as the Fed is unlikely to cut rates soon.
PM Netanyahu on Monday summoned his war cabinet for the second time in less than 24 hours to weigh a response to Iran's weekend missile and drone attack, a government source said.
In Europe, the CAC 40 and the DAX 40 were both higher, buoyed by strong performance for industrial and consumer groups, while the energy-heavy FTSE 100 fell on retreating oil prices.
The S&P 500 slid below its 50 SMA for the first time since 2 Nov. Technical indicators suggest the benchmark index could hardly defend 5,000 in the upcoming sessions with support around 4,950.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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