Stocks

Dow dips 368 points, Nasdaq 2% after Powell’s rate hike talk

U.S. stocks surrendered all earlier gains after Federal Reserve Chairman Jerome Powell signaled forthcoming rate hikes. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 34792.76 -368.03 -1.05%
SP500 S&P 500 4393.66 -65.79 -1.48%
I:COMP NASDAQ COMPOSITE INDEX 13174.651547 -278.41 -2.07%

Powell said Thursday that central bank officials could raise interest rates by 50-basis points in May and following months as they seek to tame the hottest inflation in four decades. His comments sent all three of the major averages lower. 

The Dow Jones Industrial Average fell 368 points or 1%, while the S&P 500 and Nasdaq Composite fell 1.5% and 2%, respectively. 

The yield on the 10-year Treasury note rose to 2.917%, a new 52-week high. 

Elsewhere, Twitter shares rose after Elon Musk, in a filing with the Securities and Exchange Commission, confirmed he has financing for his $43 billion offer for the social media giant at $54.20 per share.

Ticker Security Last Change Change %
TWTR TWITTER INC. 47.06 +0.34 +0.73%

Musk’s other focus, Tesla, saw its shares rise after reporting first-quarter earnings that were over seven times greater than a year earlier. The electric vehicle company benefited from strong sales despite global supply chain kinks and pandemic-related production cuts in China.

Ticker Security Last Change Change %
TSLA TESLA INC. 1,008.78 +31.58 +3.23%

In other auto news, Ford shares fell after announcing a recall for 650,000 trucks and SUV’s over faulty windshield wipers. 

Ticker Security Last Change Change %
F FORD MOTOR CO. 15.71 -0.34 -2.15%

TESLA STOCK POPS ON RECORD QUARTER, 81% ANNUAL REVENUE JUMP

American Airlines shares jumped after signaling a return to profitability joining Delta in the post-pandemic recovery.

“The demand environment is very strong, and as a result, we expect to be profitable in the second quarter based on our current fuel price assumptions” said CEO Robert Isom.

Ticker Security Last Change Change %
AAL AMERICAN AIRLINES GROUP INC. 20.22 +0.74 +3.80%
DAL DELTA AIR LINES INC. 44.73 +1.21 +2.77%
UAL UNITED AIRLINES HOLDINGS INC. 50.85 +4.33 +9.31%

CLICK HERE TO READ MORE ON FOX BUSINESS

Netflix shares slipped again after falling over 35% Wednesday after losing subscribers in the first quarter. 

Ticker Security Last Change Change %
NFLX NETFLIX INC. 218.22 -7.97 -3.52%

In other media news, Warner Discovery confirmed it will shut down CNN+ after launching just a month ago. 

Ticker Security Last Change Change %
WBD WARNER BROS. DISCOVERY INC. 21.45 -1.56 -6.78%

“As we become Warner Bros. Discovery, CNN will be strongest as part of WBD’s streaming strategy which envisions news as an important part of a compelling broader offering along with sports, entertainment, and nonfiction content,” CNN Worldwide CEO Chris Licht said in a statement reported by Fox News. 

In commodities, oil prices added to gains on Thursday over concerns about supply due to a possible European Union ban on Russian oil. West Texas Intermediate crude rose to $103.79 per barrel, while Brent, the global benchmark, hit $108.33.

Ticker Security Last Change Change %
USO UNITED STATES OIL FUND L.P. 78.14 +0.91 +1.18%
BNO UNITED STS BRENT OIL FD LP UNIT 30.93 +0.30 +0.98%
UGA UNITED STATES GASOLINE FUND LP PARTNERSHIP UNITS 58.75 +0.36 +0.62%

RUSSIA INVADES UKRAINE: LIVE UPDATES

In economic news, the Labor Department’s count of new claims for unemployment benefits rose by 184,000. Continuing claims, which track the total number of unemployed workers collecting benefits, fell to 1.41 million, the lowest in 52 years.

Traders work on the floor of the New York Stock Exchange (REUTERS/Brendan McDermid  / Reuters Photos)

Bitcoin traded around $41,000.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

The Associated Press contributed to this report.

Leave a Reply

Your email address will not be published.

Back to top button