Wall Street ends in the red, oil jumps; GME, AMC surge, ADBE tumbles

March 23, 2022 02:33 PM PDT | By Rupam Roy

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Wall Street ends in the red, oil jumps; GME, AMC surge, ADBE tumbles — Image source: © Kmiragaya | Megapixl.com

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Wall Street’s major indices closed in the red on Wednesday, March 23, as mega-cap stocks fell out of favor with risk-averse investors and benchmark crude futures jumped again.

The S&P 500 fell 1.23% to 4456.24. The Dow Jones declined 1.29% to 34358.50. The NASDAQ Composite shed 1.32% to 13922.60, and the small-cap Russell 2000 fell 1.73% to 2052.21.

Global benchmark Brent Oil and US standard WTI crude surged above US$121 and US$114 a barrel amid the ongoing conflict in Europe, increasing the burden of inflation on consumers.

St. Louis Fed President James Bullard called for a 3% interest rate hike this year, while Cleveland Fed chief Loretta Mester said bigger hikes are necessary to rein in the price rise.

The remarks follow Fed Chair Jerome Powell's comments on Monday supporting an aggressive policy. Last week, the central bank raised the interest rates by 25 bps, the first hike since 2018.

Traders expect an increase of 2.5%, up from 1.9% indicated by Fed's estimate last week. The sharp rise in a short time has raised concerns about slow economic growth.

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Meanwhile, the US single-family home sales declined unexpectedly in February, indicating the effect of higher mortgage rates and house prices. New home sales fell at an annual rate of 2% to 772,000 in the previous month, the Commerce Department said on Wednesday.

Nine out of the 11 sectors of the S&P 500 index closed in the red. The energy sector led gains in the index, utility traded near the flatline, while financial and healthcare were the stragglers.

Shares of Adobe Inc. (ADBE) tumbled 9.15% after the company reported better-than-expected revenue and profit but gave a gloomy forecast for the second quarter. The company warned of a significant hit to its digital media business due to the ongoing Russia-Ukraine war.

Food company General Mills Inc (GIS) stock surged 2.32% after the company raised the full-year guidance. Cintas Corporation (CTAS) reported strong quarterly earnings, topping analysts' estimates. The CTAS stock rose 1.70% in intraday trading.

Shares of GameStop Corp. (GME) gained 15.46% after chairman Ryan Cohen said his investment firm bought 100,000 shares of the videogame company. Another meme stock, AMC Entertainment Holdings, Inc. (AMC), which tends to move in tandem with GME, surged 18.18%.

In the energy sector, Exxon Mobil Corporation (XOM) increased by 1.56%, Chevron Corporation (CVX) gained 1.06%, and Shell plc (SHEL) rose 3.18%. BP plc (BP) and ConocoPhillips (COP) advanced 3.64% and 2.54%, respectively.

In healthcare stocks, Thermo Fisher Scientific Inc. (TMO) decreased by 2.74%, Abbott Laboratories (ABT) declined 4.09%, and Danaher Corporation (DHR) fell 2.69%. Pfizer Inc. (ANTM) and Intuitive Surgical, Inc. (ISRG) plummeted 1.61% and 3.92%, respectively.

In the financial services sector, JPMorgan Chase & Co. (JPM) plunged 2.01%, Visa Inc. (V) plunged 1.73%, and Bank of America Corporation (BAC) slipped 2.49%. Mastercard Incorporated (MA) and Wells Fargo & Company (WFC) tumbled 2.12% and 4.25%, respectively.

In technology stocks, Apple Inc. (AAPL) gained 0.82%, while Nvidia Corporation (NVDA) and Microsoft Corporation (MSFT) declined 3.36% and 1.50%, respectively.

The global crypto market climbed 0.27% to US$1.92 trillion on Wednesday afternoon. Bitcoin’s price was down 0.27% to US$42,254.74.

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Nine out of the 11 sectors of the S&P 500 index closed in the red.

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The energy sector led gains in the S&P 500 index, utility traded near the flatline, while financial and healthcare were the stragglers.

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Futures & Commodities

Gold futures were up 1.29% to US$1,946.25 per ounce. Silver increased by 1.66% to US$25.317 per ounce, while copper rose 1.62% to US$4.7763.

Brent oil futures increased by 4.98% to US$121.23 per barrel and WTI crude was up 4.54% to US$114.23.

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Bond Market

The 30-year Treasury bond yields were down 4.19% to 2.483, while the 10-year bond yields fell 3.51% to 2.293.

US Dollar Futures Index increased by 0.09% to US$98.615.

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