US stocks slip after CPI data; COIN, Unity decline

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US stocks slip after CPI data; COIN, Unity decline

US stock market update
Image source: © Coffeekai | Megapixl.com

Wall Street's main indices drifted lower on Wednesday, May 11, after US inflation rose more than expected month-on-month for comfort, renewing fears about the Fed's aggressive rate hikes.

The S&P 500 was down 1.65% to 3,935.18. The Dow Jones fell 1.02% to 31,834.11. The NASDAQ Composite decreased by 3.18% to 11,364.24, and the small-cap Russell 2000 was down 2.48% to 1,718.14.

The consumer-price index (CPI) surged 0.3% in April, the slowest pace of increase since last August, following a 1.2% surge in the prior month, as gasoline prices declined from their record highs in March.

The CPI data of the Labor Department also showed that inflation slowed to 8.3% YoY from 8.5% in March, which was the largest year-on-year gain since December 1981.

Although the pace of inflation eased in April, it is still above analysts' estimates, raising concerns that the Fed may continue its aggressive stance on interest rates to tackle inflation.

On Wednesday, the energy and utilities sectors were the top movers on the S&P 500 index. Eight of the 11 sectors of the index stayed in the negative territory. Information technology and consumer discretionary segments were the laggards.

Shares of Coinbase Global, Inc. (COIN) dropped 26.84% in the intraday session after the company reported weak quarterly results and a decline in user numbers from the previous quarter.

Gaming software company Unity Software Inc. (U) stocks plummeted 35.74% after reporting losses in the first quarter and missing analysts' revenue forecast for its second quarter.

Videogame publisher Electronic Arts Inc. (EA) stock rose 1.05% after posting a 24% increase in fiscal year revenue and announcing the end of its partnership with FIFA.

In the energy sector, Exxon Mobil Corporation (XOM) increased by 2.08%, Chevron Corporation (CVX) rose 1.48%, and Shell plc (SHEL) gained 1.69%. TotalEnergies SE (TTE) and ConocoPhillips (COP) advanced 2.86% and 1.06%, respectively.

In technology stocks, Apple Inc. (AAPL) decreased by 5.18%, Microsoft Corporation (MSFT) fell by 3.32%, and NVIDIA Corporation (NVDA) declined by 5.48%. Adobe Inc. (ADBE) and Intel Corporation (INTC) fell 3.49% and 2.68%, respectively.

In the consumer discretionary stocks, Amazon.com, Inc. (AMZN) dropped 3.20%, Tesla, Inc. (TSLA) slipped 8.25%, and The Home Depot, Inc. (HD) tumbled 2.82%. Toyota Motor Corporation (TM) and Nike, Inc. (NKE) plunged 5.64% and 1.43%, respectively.

In the crypto space, Bitcoin (BTC) and Ethereum (ETH) retreated 6.58% and 10.41%, respectively. The global crypto market cap fell 11.29% to US$1.27 trillion at 4:33 pm ET on May 11.

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Top movers and losers in the US stock market on May 11

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Top volume movers in the US stock market on May 11

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Futures & Commodities

Gold futures were up 0.56% to US$1,851.36 per ounce. Silver increased by 0.57% to US$21.547 per ounce, while copper rose 1.42% to US$4.2133.

Brent oil futures increased by 4.85% to US$107.43 per barrel and WTI crude was up 5.81% to US$105.56.

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Bond Market

The 30-year Treasury bond yields were down 2.55% to 3.049, while the 10-year bond yields fell 2.09% to 2.930.

US Dollar Futures Index increased by 0.09% to US$104.040.

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