Investors Grow Bearish As Inflation Soars

U.S. stock futures dropped as investors worried that the Fed’s tapering could have far-reaching implications on markets.

Some investors believe the Federal Reserve’s near-zero interest rates have created a so-called “bubble” in asset prices. If so, the question then becomes: can the markets continue moving higher if the Fed takes the bunch bowl (monetary stimulus) away?

Right now, markets expect the Fed to taper its $120 billion bond purchase program faster than originally anticipated. Indeed, the stimulus could end as soon as spring with rate hikes occurring later in the year.

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Inflation has grown considerably over the last year with consumer prices jumping at the fastest rate since June 1982 and wholesale prices growing at the fastest rate every recorded. Indeed, wholesale prices jumped 9.6% from a year ago in November, according to a new report released today.

However, growth concerns are mounting with global supply chain issues and pandemic controls. In this environment, it is unclear whether the markets could handle a rate hike.

Chg.
DOW Futures -106
S&P 500 Futures -29
Nasdaq Futures -178

U.S. Dollar and Treasuries

The yield on the 10-year Treasury rose two basis points. The dollar remained stable against a basket of major currencies.

Price Chg. Chg. %
U.S. Dollar Index (DXY): 96.18 -0.14 -0.14%

 

Yield Change Previous close
U.S. 1 Year Treasury Bill 0.250% 0.003 0.248%
U.S. 5 Year Treasury Note 1.229% 0.021 1.208%
U.S. 10 Year Treasury Note 1.438% 0.024 #N/A

 

Stocks To Watch

Shares of chip manufacturer NVidia dropped with the markets. The stock lost 6.75% on Monday, as global growth concerns impact demand.

Tesla dropped in premarket trading after losing 5% on Monday. The stocks sold due to Musk selling more shares. The Tesla CEO also said that the company would let users buy merch with Dogecoin.

Meme stocks like AMC and GameStop fell in premarket trading, after huge Monday losses. The drop was due to insider selling as AMC CEO continued to dump shares. GME fell almost 14% on Monday and AMC dell more than 15%.

Symbol Company Name Price Chg. % Volume
NVDA NVIDIA Corp. $278.78 -1.00% 491.12K
TSLA Tesla Inc. $950.70 -1.63% 407.36K
AMC AMC Entertainment Holdings $21.81 -6.20% 964.7K
GME GameStop Corp. $132.83 -2.83% 57.8K

Commodities To Watch

Oil was stable even as Omicron fears threatened demand. Gold was slightly down ahead of the Fed meeting.

Resource Price Chg. %
WTI Crude Oil $71.24 -0.07%
Brent Crude Oil $74.33 -0.08%
Natural Gas $3.74 -1.40%
Gold $1,784.70 -0.20%
Silver $22.14 -0.84%
Copper $4.30 0.36%

 

Crypto

Crypto continues to sell off amid news that stablecoin company Tether faces another lawsuit. The global crypto market cap is $2.18T, a 2.51% decrease over the last day. Bitcoin’s dominance is currently 41.41%, an increase of 0.19% over the same period.

Currency Symbol Price Chg. % Market Cap.
Bitcoin BTC $47,644.15 -2.09% 900.51b
Etherium ETH $3,832.23 -4.03% 453.58b
Binance coin BNB $525.55 -4.19% 79.01b
Solana SOL $159.74 -4.09% 49.17b
Cardano ADA $ 1.254 -3.46% 39.02b

 

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