Stocks Decline Amid Late-Day Selloff in Big Tech: Markets Wrap

[OZER]

U.S. stocks fell late in the Monday session amid renewed declines in big tech names. Benchmark Treasury yields were little changed as investors assessed the outlook for monetary policy ahead of key inflation data later this week.

The S&P 500 declined, falling from session highs in the last hour of trading. The tech-heavy Nasdaq 100 ended near the day's low, led lower by declines in Meta Platforms Inc., Microsoft Corp. and Alphabet Inc. Peloton Interactive Inc. soared after reports that it's exploring takeover options. The Treasury curve steepened, though moves were subdued, and the dollar was little changed.

Investors are grappling with the prospect of the steepest monetary tightening cycle since the 1990s, with markets pricing in more than five quarter-point Federal Reserve interest-rate hikes in 2022 following a strong U.S. jobs report. The U.S. inflation report this week could lead to more market volatility. A reading north of 7%, the highest since the early 1980s, is expected.

"The market is in transition," Chuck Cumello, president and chief executive officer of Essex Financial Services, said by phone. "You're going from an accommodative Fed to one that's going to tighten, you're going from a scenario last year where the federal government was literally putting money in people's pockets to spend and that's not happening, and you have these big geopolitical events. It's a very challenging environment for high P/E stocks."

Greek debt led a selloff in European peripheral bonds after European Central Bank Governing Council Member Klaas Knot said he expects a rate increase as early as in the fourth quarter. The ECB last week made a hawkish pivot, with President Christine Lagarde no longer excluding a rate hike this year.  In an address to lawmakers in the European Parliament Monday, Lagarde said any adjustment to monetary policy will be "gradual."

U.S. stocks ended higher last week, but trading was volatile amid weak numbers at U.S. tech giants including Facebook-owner Meta Platforms and positive earnings from Amazon.com Inc. A strong jobs report on Friday while good for the economy also backed the case for a hawkish Fed stance.

"We all know that global central banks are poised to have an inflection in interest rate policy; what we don't know is how far each of them are going to go and how quickly they're going to try to get there," said Sarah Hunt, portfolio manager at Alpine Woods Capital Investors. "It's this unknowing about how fast and far the Fed is going to go right now that I think is part of why you're getting these big zig zags of up and down."

[TNTHead]

America don't solve any problems.

[fgfalll]

@crypto is to perfect and can do on a global scale what Democrats are incapable of doing. That's. why  all democrats MUST destroy it, they will do anything,  in there power to destroy CRYPTO'  for the sole reason THEY CAN'T steel anymore  FROM THE PEOPLE only thing the ARE  NOT SMART ENOUGH

[atrejus_lasal]

Nature may abhour a vaccum, but the human world loves bubbles.

[NsAuRrWvHiAvLeS]

It's the great reset for the middle class. You'll own nothing and you'll be happy working as a slave. All income from past labor will be erased so you won't achieve financial freedom unless you already have deep pockets, you're highly leveraged, and you are a landlord.

[Peng_1]

Can not stop bcoz u still print money to wall street and create more wealth gap. Delay to increase interest to help big tech cos. DONT LIE TO ME AND US PPL.

[butsnake]

+Get rid of all these mandates, people can find work, and prices will go down.

[petarb123]

Huh.  This is the one problem that can't be resolved right away.   It will take years and no legislation will be able to fix it

[sparkey480]

Can it be stopped? Not until a senile old man quits printing money.

[ZoezCookiez]

I see HOGE.Finance representing with his mask behind the Lady speaking at 46:19

[Springstof]

TULIPS!  TULIPS! TULIPS!  COME GET YOUR TULIPS! Theyre not even trying to sell the fugazi.  Lol ? Crypto is web 3.0?   Our leadership is dumber than rocks.  Some things never change.  How many have been paid to push this BS story this along?

[darkmaster3694]

Republicans grok this so much more than the Democrats.

[ethan1ali1]

Official inflation figures are lies.  Real inflation is always more than double official Fed figures.  Anyone who goes shopping knows that.  Shrinkflation where less products for the same price is common.  Dollar store items are now $1.25, a 25% increase.  Most items people need for basic living like food, housing, heating and transportation are up and continuing higher.

[SoulBreakerYT]

The same companies reporting inflation are the same ones causing it.

[dylanddog998]

If USA does not want this technology to go to other countries like El Salvador, Russia etc. they should really leave some freedom for the Crypto Space. Trying to keep it down may work on short term, on long term it will just make it grow somewhere else.