Stocks traded lower Thursday morning as a sell-off on Wall Street continued to push the S&P 500 to its lowest level in more than a year and to the brink of bear market territory.
The Dow Jones Industrial Average shed 100 points, or 0.3% following five straight days of losses, while the S&P 500 declined 0.2% after the benchmark closed at its lowest level since March 2021 in the prior session. The Nasdaq Composite added 0.4%.“Stocks are for sale in all corners of the globe, and the market tone is increasingly dour,” said Adam Crisafulli of Vital Knowledge in a note.
Tech stocks continued to take a beating on Thursday. Apple lost more than 2%, pushing the shares into bear market territory — down 22% from a 52-week-high. It came as Saudi Aramco surpassed the tech giant as the world’s most valuable company on Wednesday.Amazon and Microsoft also fell Thursday, dipping 2% each.
On the earnings front, Disney shares dragged down the Dow, falling more than 2% after reporting mixed earnings results and hitting a 2-year low. The media giant reported higher-than-expected streaming subscriber growth, but warned about the Covid impact on parks in Asia. Boeing and American Express also weighed on the Dow, shedding about 2% each.
Rivian Automotive soared 22% on Thursday following quarterly results.
Fresh producer price index data, which measures prices at the wholesale level, rose 11% year over year. That number fell from March but came in above expectations and did little to shake fears of rising inflation.
The latest inflation data on Wednesday showed consumer prices in April jumped 8.3%, higher than expected and still running close to a 40-year high of 8.5%. The report caused investors to continue to sell risky assets like tech stocks and bitcoin.
Even as the sell-off gains steam, Tom Lee of Fundstrat remains bullish on stocks. He said if the market finds its footing “we’re in a world of double digit expected returns.”
“This week is interesting because the stock market declines have accelerated downwards, so the waterfall is accelerating but things that normally would corroborate a waterfall decline like yields or the VIX have not been,” Lee told CNBC’s “Closing Bell: Overtime.” “The bond market’s actually been pretty stable even in the face of a hot CPI and the VIX actually has been falling.”
He noted that of the 16 times since 1940 that the market has declined 16% in a four-month period, it was higher six months later in 12 of those events.
Thursday’s moves came a day after the Dow fell more than 300 points, while the S&P 500 and Nasdaq also dropped sharply.