U.S. equity futures traded lower amid huge volatility in major tech stocks as Facebook lost a quarter of its valuation and the January jobs report beat expectations. The better than expected jobs report showing 467,000 jobs added in January suggests the Fed will be more inclined to tighten/
Meanwhile, major tech companies saw more volatility than penny stocks earlier this week. This is certainly not a good sign for the market going forward. Wild swings in stock prices could be indicative of overpriced valuations.
Tech stocks may indeed be overpriced, by a lot, if the Fed raises rates. The Bank of England recently raised rates for the first time since 2008. Moreover, the European Central Bank is turning hawkish on inflation, which is weighing on global sentiment.
|S&P 500 Futures||4,463.25||-3||-0.07%|
U.S. Dollar and Treasuries
The yield on the 10-year Treasury fell two basis points. The dollar remained stable against a basket of major currencies.
|U.S. Dollar Index (DXY):||95.23||-0.15||-0.16%|
|U.S. 1 Year Treasury Bill||0.758%||0.005||0.753%|
|U.S. 5 Year Treasury Note||1.664%||-0.008||1.672%|
|U.S. 10 Year Treasury Note||1.817%||-0.022||1.839%|
Stocks To Watch
Meta (formerly Facebook) was stable after Tuesday’s 26.39% on a decline in Facebook’s active user numbers. The company lost $230 billion in valuation, the biggest one-day decline for a U.S. stock. In other words, Facebook lost more than what other companies are worth.
Amazon shares surged on cloud earnings, breaking $3,000 per share. It also increased the price of its Prime membership by $20, to $139. That is also likely to impact future revenue.
Social media company Snap surged almost 50% in premarket trading on strong user growth. It bounced back from a 25% drop on Tuesday, dragged down by Facebook.
Pinterest had a similar run, bouncing back from a 10% decline.
|Symbol||Company Name||Price||Chg. %||Volume|
|FB||Meta Platforms Inc.||$238.21||0.19%||380.12K|
Commodities To Watch
|WTI Crude Oil||$92.13||2.06%|
|Brent Crude Oil||$92.92||1.99%|
The global crypto market cap is $1.76T, a 5.25% increase over the last day. Bitcoin’s dominance is currently 40.79%, a decrease of 0.42% over the same period.
|Currency||Symbol||Price||Chg. %||Market Cap.|