By
Steve Muchoki
April 16th, 2024
Notably, the Federal Reserve and European Central Bank (ECB) have noted their intentions to increase interest rates.
Following a brief break this week, the Dow Jones Industrial Average and other stocks dipped on Thursday, with a year-end selloff returning to Wall Street. This is barely a week after Coinspeaker reported about the Treasury yields rebound and setting the pace for the stock market growth.
While the Dow declined 348.99 points or 1.05% to 33,027.49, S&P 500 fell 1.45% to 3,822.39. Meanwhile, the Dow Jones Industrial Average shed up to 803.05 points earlier in the session. The Nasdaq Composite also went down 2.18% to 10,476.12. The Dow plunged after gaining 526 points on Wednesday following better-than-expected earnings from Nike (NYSE: NKE) and transport company FedEx (NYSE: FDX).
The fall also came after solid consumer sentiment data for December. Also, on Wednesday, the S&P 500 popped 1.49% while the NASDAQ Composite grew 1.54%. The declines came Thursday after Thursday’s gains as investors worry about a potential recession. Many investors are concerned that a stricter monetary tightening from central banks globally will impact the economy. Additionally, tech shares recorded losses. While semiconductor company Lam Research (NASDAQ: LRCX) fell almost 8.7%, Advanced Micro Devices (NASDAQ: AMD) shed 5.6%.
Speaking in an interview with CNBC’s “Squawk Box” on Thursday, the founder of Appaloosa Management, David Tepper, stated:
“I’m leaning short on the equity markets. The upside/downside just doesn’t make sense to me when I have so many … central banks telling me what they are going to do.”
Notably, the Federal Reserve and European Central Bank (ECB) have noted their intentions to increase interest rates. The Bank of England officials have also shown the possibility of taking the same measure. Following Tepper’s comments on “leaning short on the equity markets,” stock futures slumped to their lows. The Dow has fallen 4.5% since the beginning of the month, and S&P 500 has lost 6.3%. At the same time, the Nasdaq Composite has shed 8.7%. The three averages have been projected to report their worst annual performance, breaking a 3-year win streak since 2008.
EV maker Tesla dipped about 3.7% after the company offered a $7,500 discount on its Model 3 and Model Y vehicles. TSLA closed down 12.22% on Thursday and is currently up 0.68% to $126.15. The company has constantly lost its value, shedding nearly 65% over the past year. Also, used car company CarMax also missed profit and revenue expectations, causing the retailer to lose 3.7%.