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US stocks resumed their selloff on Monday, June 13, after a sharp fall in the previous session on inflation woes as investors braced for the Fed's third installment of interest rate hikes this week.
The S&P 500 fell 3.88% to 3,749.63. The Dow Jones decreased by 2.79% to 30,516.74. The NASDAQ Composite dropped 4.68% to 10,809.23, and the small-cap Russell 2000 fell 4.76% to 1,714.59.
Stocks plunged on Friday after US CPI inflation climbed to 8.6% in May, the biggest increase since 1981.
Friday's selloff dragged down the benchmark US indices to their lowest level since the pandemic in 2020. S&P is down more than 20% since its record close on January 3.
All eyes are now on Fed's monthly meeting this week. The Federal Reserve is scheduled to announce a half-a-point rate increase after its two-day Wednesday conference.
The central bank is expected to keep up the tempo with a successive similar hike in July. Investors worry that it may eat into their profits and force the economy into recession.
The bank had raised the rates by 25 and 50 basis points in March and May to calm inflation. The 10-year Treasury bond yields continued to rise for the second straight session on Monday, rising by 8.67% to 3.431.
All the 11 stock segments of the S&P 500 index stayed in the negative territory. Energy, consumer discretionary, and information technology sectors were the bottom movers.
Meanwhile, the crypto market losses accelerated since Friday's CPI data, falling below the US$1-trillion mark for the first time since early 2021, after it shed around 15% on Monday afternoon.
Blockchain-based stocks like Coinbase Global, Inc. (COIN) fell over 13%, and Riot Blockchain, Inc. (RIOT) declined more than 10%. The world's biggest cryptocurrency, Bitcoin (BTC), also fell around 16% on Monday.
Growth stocks like Amazon.com, Inc. (AMZN) and Tesla, Inc. (TSLA) were among the most-hit stocks on Monday. The AMZN and TSLA stocks tumbled 5.42% and 7.39%, respectively.
Shares of Astra Space, Inc. (ASTR) plummeted over 24% after the aerospace company’s rocket carrying NASA satellites failed to reach orbit on Sunday. It is the second failure of its three launches this year.
In the energy sector, Exxon Mobil Corporation (XOM) decreased by 4.99%, Chevron Corporation (CVX) declined by 4.93%, and Shell plc (SHEL) retreated by 4.02%. ConocoPhillips (COP) and TotalEnergies SE (TTE) plummeted 4.84% and 3.81%, respectively.
In consumer discretionary stocks, The Home Depot, Inc. (HD) fell 2.34%, Alibaba Group Holding Limited (BABA) tumbled 10.31%, and Toyota Motor Corporation (TM) plunged 3.69%. Nike, Inc. (NKE) and Lowe's Corporation, Inc. (LOW) ticked down 4.06% and 2.97%, respectively.
In the technology sector, Apple Inc. (AAPL) declined 3.62%, Microsoft Corporation (MSFT) lost 4.08%, and NVIDIA Corporation (NVDA) declined 7.85%. Broadcom Inc. (AVGO) and ASML Holding N.V. (ASML) retreated 4/38% and 5.19%, respectively.
In the crypto space, Bitcoin (BTC) and Ethereum (ETH) plummeted by 15.38% and 17.10%, respectively. The global crypto market cap slumped 12.91% to US$967.84 billion at 4:00 pm ET on June 13.
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Futures & Commodities
Gold futures were down 2.86% to US$1,821.90 per ounce. Silver decreased by 4.02% to US$21.050 per ounce, while copper fell 2.21% to US$4.1995.
Brent oil futures increased by 0.02% to US$122.03 per barrel and WTI crude was up 0.11% to US$120.80.
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Bond Market
The 30-year Treasury bond yields were up 4.93% to 3.356, while the 10-year bond yields rose 6.67% to 3.368.
US Dollar Futures Index increased by 1.02% to US$105.070.
