The stock market fell Wednesday, with the Nasdaq composite off 1% as technology stocks led the market lower. But shipping stocks remained hot.
The Nasdaq was down 1%. Technology Select Sector SPDR (XLK) fell 1.3% and may face resistance at its 200-day moving average.
The S&P 500 fell 0.6% and the Dow Jones Industrial Average lost 0.7%. The Russell 2000 was down 1.3%. Volume fell on the Nasdaq but rose on the NYSE compared with the same time on Tuesday.
The stock market is taking many of its cues from other financial markets, namely crude oil and bonds.
U.S. Stock Market Today Overview
|Last Update: 10:10 AM ET 3/23/2022|
U.S. crude rose 3.6% to $113.14 a barrel. After sinking below $95 last week, oil futures have been rebounding and are up more than 5% for the week.
Russia said Tuesday that storm damage may cause a temporary drop in oil exports via a pipeline from Kazakhstan to the Black Sea, The Wall Street Journal reported. The loss of around 1 million barrels a day represents about 1% of global oil demand. Repairs could take up to two months.
Yield Curve A Worry For Stock Market
The yield on the 10-year Treasury note was little changed at 2.35%. Still, it’s the highest since May 2019 and up about 28% from 1.84% at the end of February. At the same time, the yield curve is flattening, which may be an early sign of an economic slowdown.
Fed Chairman Jerome Powell, whose Fed has struck a hawkish stance to battle inflation, spoke at the Bank for International Settlements Innovation Summit earlier today, but he had no remarks on rate policy.
Among key movers, Genco Shipping & Trading (GNK) broke out of a cup-with-handle base in heavy trading. The stock is in buy range up to 23.09 from its 21.99 buy point.
The move is part of a rally in shipping stocks that’s taken the group to a lofty No. 14 out of 197 industry groups. Cargo shippers are up 12% this month after rising 11.6% in February. Zim Integrated Shipping (ZIM) made a new high as it extends its March rally to nearly 40%.
Adobe (ADBE) tumbled 7.5%, leaving the stock on pace to end a six-day win streak. The software company late Tuesday beat analysts’ estimates for its February-ended quarter. But management’s guidance for the current quarter missed expectations after the company halted sales in Russia and Belarus.
Nvidia, Pure Storage Fall
Nvidia (NVDA) fell 2.6% and has erased the week’s earlier gains. On Tuesday, the company announced updates to its Omniverse platform, which is used for online collaboration and simulation. It also introduced new hardware and software for AI and accelerated computing.
Pure Storage (PSTG) fell below the 35.19 buy point of Monday’s breakout. So far, there’s no sell signal but the data storage stock needs to be watched.
The Innovator IBD 50 ETF (FFTY) fell 0.3% as industrial and cyclical leaders made the index’s best gains. Cleveland-Cliffs (CLF) and CF Industries (CF) made new highs.
In other notable action, Alphabet (GOOGL) climbed above its 200-day moving average for the first time in more than four weeks. The weakest IBD 50 stock was Nvidia.
In economic news, new home sales fell to 772,000 in February from a revised 788,000 the previous month. Economists expected 810,000. The SPDR S&P Homebuilders ETF (XHB) fell 2.5% this morning.
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