Stock Market News Live Updates: Stocks Plunge Following Red-Hot Inflation Print, Fed Policymaker’s Remarks

Feb 10, 2022

Stock Market News Live Updates: Stocks Plunge Following Red-Hot Inflation Print, Fed Policymaker's Remarks

Equities in the United States fell sharply on Thursday as investors evaluated another record-high inflation figure and comments by St. Louis Federal Reserve's President James Bullard, who suggested the Fed may be more aggressive than expected and tighten monetary policies amid rising price levels.

The Dow Jones Industrial Average ended a three-day unbeaten run by falling 500 points, or 1.5%, after remarks from Bullard, who expects a 100 basis point interest rate rise by July 1. The S&P 500 fell 1.8%, while the Nasdaq Composite fell 2.1%, pushed down by declines in technology. At the same time, the 10-year Treasury note increased to 2% for the first time since August 2019.

"I normally take St. Louis Federal Reserve President Jim Bullard's comments with a dose of skepticism since he has a track record of constantly changing his predictions," remarked Bleakley Advisory Group CIO Peter Boockvar. "However, it is important to remember that he is going to vote this year, and therefore he is a very crucial figure to watch."

Inflation in the United States surged in January, reaching its highest level since 1982, with prices for a wide variety of products and services rising further amid ongoing scarcities and supply problems. According to Bloomberg statistics, consensus analysts expected a 7.3% increase.

"While inflation kept exceeding the Federal Reserve's goal last month, core inflation factors are beginning to stabilize," Comercia Bank chief economist Bill Adams stated. "Remember that a large portion of the price increase was due to shortages, and the market is making significant progress in alleviating supply problems."

Quadratic Capital Management founder Nancy Davis made a similar conclusion in her post-CPI remark.

"While inflation is putting a strain on Fed policy choices, our present inflationary climate is unusual and is mostly driven by supply chain disruptions, which the Fed cannot address with tighter monetary policy," Davis stated.

The rise in the 10-year Treasury yield to 2% weighed on tech firms on Thursday. Markets were pulled down by the falls of giants such as Apple (lower 2.34% to $172.16 per share) and Alphabet (plummets 2.02% to $22,772.05 per share).

"Even though we see the yield curve starting to flatten, we are keeping an eye on the 10-year, and the CPI," ERShares chief operating officer and chief investment strategist Eva Ados commented, adding that the three key factors in the statistics are costs of labor, food, and energy.

According to Ados, once the 10-year Treasury yields 2%, "it will spark a psychological barrier and increase fear in the market."

The prior trading day's indices were boosted by optimistic company quarterly reports. The Walt Disney Company, a Dow component, reported first-quarter 2022 earnings after market close on Wednesday that far above expectations. Following the news, the media conglomerate's stock rose as much as 9% due to better-than-expected performance for its streaming platform Disney+ and a rebound in amusement park visitations. Uber also reported earnings after the bell, showing quarterly earnings that were above strategist expectations and indicating that headwinds created by the Omicron COVID-19 spike had subsided. "In the previous year, it was all about 'explain to me the storyline and how fantastic it is,'" Satori Fund founder and portfolio manager Dan Niles pointed out. "In 2022, it's all about 'show me the money and show me that you're expanding profitably - that you have cash flow."

After the Fed's surprising adjustment in how hawkish it will tighten monetary policies shook markets last month, investors have sought solace in good profits in recent weeks. According to Bank of America's most recent report, S&P 500 earnings per share have exceeded average estimates by 6% so far in the current quarter and are on course to expand at a pace of well over 20% year-on-year.

However, as the profits period comes to an end, investors will return their focus to macroeconomic issues, with a particular emphasis on Thursday's inflation figure — a 7.5% annual CPI rise, a 40-year high.

https://liquidity-provider.com/app/uploads/2022/02/unnamed-46.png

"We believe focusing moves back to the macroeconomic side of the ledger this week," Stuart Kaiser, UBS head of equity derivatives research, said, adding that the European Central Bank and the Bank of England are tightening monetary policies alongside the Federal Reserve, and a bunch of high inflation files is anticipated in the following months. "Considering all of that, we don't believe the rocky trip is finished."

Subscribe Our Newsletter

Tesla Is a Goldman Sachs Top Pick for 2022. The Stock Is Dropping Anyway
Tesla Is a Goldman Sachs Top Pick for 2022. The Stock Is Dropping Anyway

Wall Street is becoming more upbeat on Tesla shares, but the increased confidence among analysts hasn't been enough to boost the price, given investor concerns about increasing interest rates.

Companies
Trump Bitcoin Reserve Plan – What is It About?

Hazem

Trump Bitcoin Reserve Plan – Will it Solve The US National Debt?

After winning the US elections, the new Trump Bitcoin reserve plan is set to boost the national economy, triggering a massive BTC price rally.

Crypto
B2BROKER Liquidity B2BROKER Liquidity
Sponsored
Tamta

Best Technical Analysis Indicators
Throughout history, people have always looked for ways to make money, and trading has become a popular choice today. But successful trading isn't about luck or guesswork - it requires careful analysis to make the right decisions.

discover
How to Provide Liquidity to Cryptocurrency Exchange?

Oliver

How to Provide Liquidity to Cryptocurrency Exchange?

Cryptocurrency is already changing the face of trading. Due to the greater demand for crypto assets, new exchanges are hitting the market with promised convenience and features. However, every cryptocurrency exchange requires liquidity.

Liquidity
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Hazem

    Grok vs ChatGPT: What’s the Best AI Assistant You Need in 2025

    Grok vs ChatGPT

    Сonstantine

    How to Choose the Right Liquidity Provider for Your Brokerage

    How to Choose the Right Liquidity Provider for Your Brokerage

    Сonstantine

    Low-Latency Trading Defined: Speed, Strategy and Technology

    Low-Latency Trading Explained

    Hazem

    How Liquidity Depth Affects Slippage in High-Volume Trading

    Liquidity depth and slippage in trading

    Hazem

    What is FIX API Liquidity Connection and How Does it Power Institutional Trading?

    FIX API in institutional trading

    Сonstantine

    OTC Trading Strategies and Technologies to Succeed in Over-the-Counter Markets

    OTC Trading Strategies

    Alexander

    What is OTC Trading? A Complete Guide for 2025

    what is OTC

    Alexander

    Synthetic Futures: A Trader’s Guide to Replicating Positions with Options

    How to Trade Synthetic Futures

    Сonstantine

    Order Book Depth: What It Is And Why It Matters?

    Order Book Depth What It is And Why It Matters

    Alexander

    Spot vs Perpetual Futures: Which Is Right for You?

    Spot vs Perpetual Futures explained

    Hazem

    5 Reasons Traders Are Switching to Perpetual Futures

    5 Reasons to Switch to Perpetual Futures

    Constantine

    Top 3 Liquidity Challenges Facing New Exchanges and How to Solve Them

    Top 3 Liquidity Challenges Facing New Exchanges Today

    Constantine

    Financial Planning in the Cryptocurrency Era — Master Crypto and Digital Asset Strategies

    Financial Planning in the Cryptocurrency Era

    Hazem

    Best Platforms to Trade Perpetual Futures in 2025

    Best platforms to trade perpetual futures in 2025

    Alex

    Top 10 Fintech Website Development Agencies for 2025

    Best Fintech Website Development Agencies for 2025

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.