Stocks crash as volatile month advances, tech stocks extend losses

Stocks fell on Wednesday, yielding gains as concerns about inflation and soaring energy and commodity prices outweighed optimism about the pace of the economic recovery.

Tech stocks fell again, dragging the Nasdaq down nearly 1% to reverse price after the index’s best day since August Tuesday. The S&P 500 and the Dow Jones also fell sharply.

So far in October, stocks have fluctuated between large gains and losses as investors struggle to determine whether the economic and political environment will be favorable enough for risky assets to prevent a repeat of September’s volatility. The CBOE volatility index, or VIX, jumped to hold above 20, after spending much of the summer in the mid-teens.

“It’s not clear what October has in store. I have a big market question in my mind: Could this be the ugly sequel to September?” Kristina Hooper, Chief Global Markets Strategist, Invesco US, said Yahoo Finance Live Tuesday.

“Certainly what we’ve seen so far is that whenever there is a massive sell-off, investors are quick to step in and find opportunities,” she added. “I guess we’re probably going to see more volatility in the future as we anticipate the Fed’s phasing-out announcement. And that creates an announcement where investors can cost the average dollar on down days in the markets. areas where they would like it and where they want it. are interested in increasing their visibility. This is probably not the only massive sale that we will see for October. “

One of the main concerns in the markets is inflation, as the prices of goods and services increase for both businesses and end users as demand remains high and supply chain constraints continue to weigh. Traders were waiting to see if these lingering problems ultimately weigh on economic activity and corporate earnings, with details on the latter due to focus with the unofficial start of the third quarter earnings season next week with the big banks.

At least for now, the latest batch of economic data has been largely bullish on the state of the US economy. Durable goods orders, retail sales and purchasing manager indices that track activity in the US manufacturing and services sector have all recently beaten expectations. However, this data also brought many signs of inflation: a sub-index tracking prices paid by suppliers rose in the latest Institute for Supply Management services index, and personal consumption spending rose. at the highest annual rate since 1991 based on government data released last week.

“It’s no surprise that global ‘stagflation’ is returning to everyone’s vernacular. Energy prices are rising, these freighters are piled up on both sides of the coast, shortages of everything … and these prices are rising. But the main news is good, “Simeon Hyman, head of investment strategy at ProShares Advisors, told Yahoo Finance Live on Tuesday.

“Is there going to be a little inflation? Probably. Are the rates going to go up? Just with a decrease, almost absolutely,” Hyman added. “But will there be a contraction in economic activity? Very unlikely – the economy should remain fairly strong.”

10:39 am ET: Bitcoin hits highest level since May

Bitcoin (BTC) prices briefly touched their highest level in nearly five months during Wednesday’s session, with traders flocking to digital currencies despite the pullback of other risky assets like stocks.

The prices of the largest cryptocurrency by market cap reached as high as $ 55,173 on Wednesday morning in New York City, according to data from Yahoo Finance. It was the first time since May that the token crossed the $ 55,000 threshold and spiked more than 10%.

Other cryptocurrencies have also traded broadly higher. Ethereum (ETH) gained more than 5% at the session high to hit $ 3,600, while Litecoin (LTC) and XRP (XRP) were also up.

9:30 a.m. ET: Stocks open sharply lower

Here’s where the markets were trading after the opening bell Wednesday morning:

  • S&P 500 (^ GSPC): -37.96 (-0.87%) to 4,307.76

  • Dow (^ DJI): -255.89 (-0.75%) to 34,058.78

  • Nasdaq (^ IXIC): -137.49 (-0.95%) to 14,298.00

  • Raw (CL = F): $ -0.69 (-0.87%) to $ 78.24 per barrel

  • Gold (CG = F): – $ 3.90 (-0.22%) to $ 1,757.00 per ounce

  • 10-year cash flow (^ TNX): -1.4 bps for a yield of 1.517%

8:50 a.m. ET Private payrolls rise more than expected in September as constraints on Delta variants ease

U.S. private employers created more jobs than expected in September as COVID-19 cases abated after a summer peak and eased stress in the job market.

Private payrolls increased by 568,000 last month, according to ADP’s closely watched monthly report on Wednesday. Economists were looking for an increase of 430,000 private payrolls, according to Bloomberg consensus data. In the previous month, private sector jobs had increased by 340,000. This figure has been revised down from the 374,000 previously reported for August.

ADP’s report comes, as usual, two days before the “official” government employment report from the Department of Labor. Consensus economists research non-farm payrolls increased by 488,000 in this report.

7:45 am ET Wednesday: Stock futures reverse price, Nasdaq heads to 1.4% decline

Here’s where the markets were trading ahead of the opening bell Wednesday morning:

  • S&P 500 Futures Contracts (ES = F): -49.85 points (-1.15%), to 4,284.25

  • Dow Futures (YM = F): -329.00 points (-0.96%), to 34,854.00

  • Nasdaq Futures (NQ = F): -195.75 points (-1.34%) to 14,459.50

  • Raw (CL = F): $ -0.38 (-0.48%) to $ 78.55 per barrel

  • Gold (CG = F): – $ 5.90 (-0.34%) to $ 1,755.00 per ounce

  • 10-year cash flow (^ TNX): +1.4 bps for a yield of 1.545%

6:10 p.m. ET Tuesday: Stock futures hold their gains

Here’s where the markets were trading Tuesday night:

  • S&P 500 Futures Contracts (ES = F): +3.75 points (+ 0.09%), to 4,337.75

  • Dow Futures (YM = F): +50 points (+ 0.15%), at 34,233.00

  • Nasdaq Futures (NQ = F): +13.75 points (+ 0.09%) to 14,669.00

NEW YORK, NEW YORK – SEPTEMBER 30: Traders work on the floor of the New York Stock Exchange (NYSE) on September 30, 2021 in New York City. In the afternoon, the Dow Jones fell more than 250 points as investors continued to worry about inflation, wages and supply chain issues. (Photo by Spencer Platt / Getty Images)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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Natalee Broderick

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