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Stock Market Today: 2% Drop as Inflation, Fed, Oil Concerns Weigh on Traders

Stock Markets Jun 28, 2022 03:50PM ET
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By Daniel Shvartsman

Investing.com -- Markets dropped after a promising start to the day, as risk assets suffered on Tuesday amidst signs that oil's high price is stabilizing and that the Fed is not interested in slowing down.

The S&P 500 dropped 2% on the day to 3822, while the Dow Jones Industrial Average dropped 1.6%. The Nasdaq Composite took the biggest hit, dropping 3%, a sign that the concerns of inflation and lagging growth predominated in Tuesday trading.

One of the blows to bullish hopes was cold water from the Fed in the form of pledges to continue to curb inflation. In an interview on LinkedIn, San Francisco Fed President Mary Daly said, "Many are worried that the Fed might be acting too aggressively and maybe tip the economy into recession. I am myself worried that left unbridled, inflation would be a major constraint and threat to the U.S economy and continued expansion." New York Federal Reserve Bank President John Williams and St. Louis Fed President James Bullard echoed those statements in separate interviews.

As a reminder of that potentially unbridled inflation, both crude oil and Brent oil closed up over 2% today. The commodity jumped on reports that gulf oil producers are near "max outputs", meaning no supply side solution is poised to come to the rescue.

And while consumer confidence surveys have come into some question among market participants, the Conference Board consumer survey missed expectations and set a 15-month low, dating back to pre-Covid vaccine rollouts in the U.S., a reminder of how inflation is weighing on sentiment.

Nike (NYSE:NKE) was among the big losers, down nearly 7% after posting earnings that were received negatively in what Morgan Stanley called a "reset quarter". Etsy (NASDAQ:ETSY) had a second consecutive big losing day, down 8.2%, while semiconductor company Advanced Micro Devices Inc (NASDAQ:AMD) dropped 6.2%.

Energy stocks were the leaders for a second consecutive day, with Hess (NYSE:HES) up 5.6% to lead the S&P 500. Occidental Petroleum (NYSE:OXY) moved 4.8% higher after news broke of Warren Buffett's firm Berkshire Hathaway (NYSE:BRKa) continuing to add to its position in Occidental, taking its position to over 16% of the oil company.

WideOpenWest Inc (NYSE:WOW) rose 2% on reports that another infrastructure firm, Global Infrastructure Partners, was considering a bid for the company, some weeks after Morgan Stanley Infrastructure Partners was reported to be in talks with the cable company.

Cryptocurrencies joined the general risk-off sentiment, with Bitcoin down 2.9% to $20,260 as of 4pm ET, and Ethereum down 3.3%. The United States 10-Year was just about flat, down 7 basis points on the day to 3.187, while the EUR/USD dropped 0.53% to 1.0527.

Stock Market Today: 2% Drop as Inflation, Fed, Oil Concerns Weigh on Traders
 

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Comments (16)
Options Trader
Options Trader Jun 29, 2022 7:56PM ET
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Its like a chatty kathy doll. Pull the string and is spews recession on loop. We technically are not in a recesssion, but those holding spy puts want to be.
Peter Cubelo
Peter Cubelo Jun 28, 2022 9:06PM ET
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the banana indicator says the Market's going to turn around by tomorrow and going to a bull market
Danny Tan
Danny Tan Jun 28, 2022 9:02PM ET
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cmon biden .boost the shale oil ...opec will follow
Chris Vu
Chris Vu Jun 28, 2022 8:43PM ET
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So many scammers here trying to suggest his/her best broker.
Andrew Qiu
Andrew Qiu Jun 28, 2022 8:43PM ET
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the best broker is TD.
Dave Jones
Dave Jones Jun 28, 2022 8:15PM ET
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So....economic meltdown...The cornerstone of the American economy!
Kelly Mayer
Kelly Mayer Jun 28, 2022 7:53PM ET
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Because you keep insisting and calling it a bear market. You created one. Massive market manipulation.
Kelly Mayer
Kelly Mayer Jun 28, 2022 7:53PM ET
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Institutions are going to push for a sub 3000 s&p.
Narayanan Ramachandran
Narayanan Ramachandran Jun 28, 2022 7:53PM ET
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Earlier Fed's overreaction by way of stimulus to control COVID pushed markets up. Nos the same Fed has realised its own side effects namely inflation and slowing down arr threatening to bring back the same COVID like situation. Allow markets to play its own way because Fed's every interference is not without side effects
Narayanan Ramachandran
Narayanan Ramachandran Jun 28, 2022 7:53PM ET
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Earlier Fed's overreaction by way of stimulus to control COVID pushed markets up. Nos the same Fed has realised its own side effects namely inflation and slowing down arr threatening to bring back the same COVID like situation. Allow markets to play its own way because Fed's every interference is not without side effects
Jimmy Dorward
Jimmy Dorward Jun 28, 2022 7:15PM ET
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Same story for 6 months. Anything new???
Zhikang Sim
Zhikang Sim Jun 28, 2022 6:51PM ET
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the author change topic again.... haha
Jose Cabreja
Jose Cabreja Jun 28, 2022 6:46PM ET
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what happen to inflation fear easing 🤣🤣 fk in casino 🤣
Jose Cabreja
Jose Cabreja Jun 28, 2022 6:45PM ET
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what da fk happen?? just yesterday inflation fear was gone 🤣🤣 fkin casinos..Puts printing I ain't mad...next week fear will go away again 🤣 calls printing.
 
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