Editor: Chloe
Hey moomooers,
Good evening. Here is the latest Market Recap for you.
U.S. stocks pulled back on Wednesday, led to the downside by technology shares as key inflation data showed higher-than-expected price pressures.
How did major indexes fare?
The $Dow Jones Industrial Average(.DJI.US)$ fell 681 points, or 1.99%, to notch its single-worst session since January.
The $S&P 500 index(.SPX.US)$ lost 2.1%, its biggest one-day drop since February.
The $Nasdaq Composite Index(.IXIC.US)$ slid 2.6%.
Source: moomoo
What drove the market?
Investors dumped growth stocks in fear of high inflation
The Labor Department reported that the prices American consumers pay for goods and services accelerated at their fastest pace since 2008 last month with the CPI spiking 4.2% from a year ago. Excluding volatile food and energy prices, the core CPI increased 3% from the same period in 2020 and 0.9% on a monthly basis.
Investors have been quick to dump growth stocks amid creeping inflation concerns since rising prices tend to squeeze margins and erode corporate profits. If price pressures run too hot for a sustained period of time, the Fed would be forced to tighten monetary policy.
Tech stocks have come under pronounced pressure in recent weeks. Shares of $Alphabet Inc-CL C(GOOG.US)$, $Microsoft Corp(MSFT.US)$, $Amazon.Com Inc(AMZN.US)$, and $Apple Inc(AAPL.US)$ all fell more than 2%. Chipmakers as tracked by the $VanEck Vectors Semiconductor ETF(SMH.US)$ dropped 4.1%.
Which stocks were in focus?
$Virgin Galactic Holdings Inc(SPCE.US)$— The space exploration stock fell 11.3%, continuing its volatile trading after Tuesday's dramatic intraday turnaround. Ark Invest revealed on Tuesday night that its space exploration ETF had sold almost all of its stake in the company.
$FuboTV Inc(FUBO.US)$— Shares of FuboTV gained 9.7% following the release of the company's first-quarter results. FuboTV reported a loss of 59 cents per share, which was not comparable to estimates. The company made $119.7 million in revenue, topping a Refinitiv forecast of $103.9 million.
$VIZIO HOLDING CORP.(VZIO.US)$— Vizio shares slid 13% after the company posted a profit of 2 cents per share for the first quarter, which was not comparable to estimates. Revenue came in at $506 million, while analysts polled by Refinitiv expected sales of $484 million. Vizio also said Smart TV shipments came in at 1.5 million, below a FactSet estimate of 1.65 million.
$Unity Software Inc(U.US)$— The tech stock dipped 0.35% despite posting a smaller-than-expected loss for the first quarter and receiving an upgrade from Stifel. Unity's stock price has dropped more than 50% in the last five months.
$Domino's Pizza Inc(DPZ.US)$– Shares of the pizza chain jumped 0.7% after billionaire hedge fund manager Bill Ackman said Pershing Square built a 6% stake in the company. Ackman said he is bullish on Domino's pioneering moves in technology and delivery. The stock is up more than 13% in 2021.
$NortonLifeLock Inc(NLOK.US)$— The security software stock jumped 7.2% after the company received a double upgrade from Bank of America. The investment firm said there could be a renaissance for consumer security technology in the years ahead.
Source: Market Watch, CNBC