Benchmark US indices retreated from the previous day’s gains to close lower on Thursday, March 10, after US inflation touched another 40-year high in February, fuelled by higher energy costs.
The Labor Department said the consumer price index (CPI), which measures the cost of goods and services across the economy, surged to a four-decade high of 7.9% YoY in February.
Economists expect inflation to stay high in March even if the Fed increases the interest rate next week. They said the Ukraine-related disruptions would fuel further inflation. Oil prices came down on Thursday, paring the previous day’s gain but remained above US$110 per barrel.
The S&P 500 fell 0.43% to 4,259.53. The Dow Jones declined 0.34% to 33,174.07. The NASDAQ Composite fell 0.95% at 13,129.96, and the small-cap Russell 2000 was down 0.30% to 2,010.32.
The Ukrainian and Russian foreign ministers’ talks to end the three-week-long war on Thursday failed to arrive at a decision. President Vladimir Putin said Russia would emerge stronger despite Western sanctions.
Nine out of the 11 sectors of the S&P 500 closed in the red. Energy, consumer discretionary, and utility sectors advanced. Technology, financials, and consumer staples were the bottom movers.
Shares of Amazon.com, Inc. (AMZN) grew by over 6% after its board approved a 20-for-1 stock split and a US$10-billion share repurchase plan the day before.
CrowdStrike Holdings, Inc. (CRWD) stock rose 13% in intraday trading after the upbeat forecast in an earnings call. Its revenue increased by 66% to US$1.45 billion in fiscal 2022. The company expects revenue to be between US$2.13 billion and US$2.16 billion in fiscal 2023.
Asana, Inc. (ASAN) stock fell over 21% after more than expected first quarter loss.
Chinese company JD.com, Inc. (JD) stock slid more than 16% after posting slow revenue growth and a fourth-quarter loss of US$61.5 million.
In the energy sector, Exxon Mobile Corporation (XOM) surged 3.15%, Chevron Corporation (CVX) rose 2.71%, and BP plc (BP) increased by 0.03%. Schlumberger Limited (SLB) was up by 2.11%, and ConocoPhillips (COP) increased by 3.55%.
In the consumer discretionary sector, Amazon.com, Inc. (AMZN) stock rose 5.63%, The Home Depot, Inc. (HD) was up 0.15%, and Airbnb, Inc. (ABNB) surged 2.71%. The TJX Companies, Inc. (TJX) and Marriott International, Inc. (MAR) were up 1.44% and 1.99%, respectively.
In the technology sector, Apple Inc. (AAPL) stock plunged 2.72%, Microsoft Corp. (MSFT) slid 1.02%, and Nvidia Corporation (NVDA) fell 1.41%. Broadcom Inc. (AVGO) and Cisco Systems, Inc. (CSCO) decreased by 1.40% and 2.22%, respectively.
The global cryptocurrency market was down 4.71% to US$1.75 trillion at 2.25 pm ET, as per coinmarketcap.com. Bitcoin’s (BTC) price fell 6.28% to US$39,237.69 in the last 24 hours.
Futures & Commodities
Gold futures surged 0.98% to US$2,007.70 per ounce. Silver futures increased by 1.96% to US$26.323 per ounce, while copper futures surged 1.61% to US$4.6463.
Brent oil futures declined by 0.99% to US$110.04 per barrel and WTI crude futures were up by 1.95% to US$106.58.
The 30-year Treasury bond yields increased 3.21% to 2.376, while the 10-year bond yields were up 2.06% to 1.988.
US Dollar Futures Index surged 0.60% at US$98.537.