US stocks fall as investors struggle to stage a recovery from Fed-induced sell-off

  • US stocks extended losses on Thursday, ending a swing session after the market plunged the previous day.
  • The Nasdaq Composite Index rose in the session but failed to recover from its 3.3% decline.
  • Next for investors is the US jobs report on Friday.

US stocks lost further ground on Thursday, with blue-chip Dow Jones extending selling as investors remain choppy after the Federal Reserve’s meeting minutes indicated that policy makers will pull back more support for the economy than markets expected.

Key benchmarks on Wall Street swung between gains and losses during Thursday’s session in the wake of the crash that saw the Nasdaq Composite plunge 3.3% on Wednesday. High-growth technology stocks bore the brunt of the market reaction to the Federal Reserve’s meeting minutes which showed an increasingly hawkish stance among policy makers. Technology stocks struggled on Thursday as the closely watched 10-year Treasury yield rose to 1.75% for the first time since March 2021.

Ed Moya, chief market analyst at Oanda, said in a note Thursday that some investors are “reluctant to take huge positions” ahead of the US government’s non-farm payroll report on Friday.

This is where the US indices stood at 4:00 pm on Thursday:

“The big question for many traders is how high yields will go and at some point they will become a problem for the economy,” he said. “Most Wall Street has an optimistic outlook for 2022, but the risks of a Fed policy error, US geopolitical tensions with both Russia and China, and inflationary pressures pose serious risks to the stock market later in the year.”

Louis Federal Reserve Chairman James Bullard said in a speech Thursday that he expects the Fed to move to raise interest rates as early as March.

Across the board, crypto bull Mike Novogratz said he expects bitcoin to bottom out at $38,000 as institutional investors prepare to buy the cryptocurrency in the midst of a sell-off as 2022 begins.

Rivian stock tumbled and fell below its $78 initial public offering price during the session, as shares of the EV startup tumbled from Amazon’s new deal with Stellantis to buy rival electric trucks.

Mark Mobius says the tech sell-off is a good time to load up on FAANG stock.

A new analysis shows that the growth of cryptocurrency markets in 2021 also came with an 80% rise in crypto crime.

Oil prices rose. West Texas Intermediate crude rose 1.9% to $79.24 a barrel. Brent crude, the international benchmark, rose 1.5 percent to $81.97.

Gold fell 2.1% to $1,787.60 an ounce. The 10-year yield rose nearly two basis points to 1.727%.

Bitcoin pared its loss, down 0.4% at $43,052.52. The bear market in bitcoin, ether and other altcoins drove the total cryptocurrency market cap to nearly $2 trillion on Thursday.