By Matt Grossman and Joe Wallace
Stocks fell Wednesday after fresh data showed that inflation--though easing--remained higher than expected last month, feeding renewed apprehension about the Federal Reserve's likely response and extending a punishing stretch for equities.
The $S&P 500 index(.SPX.US)$ declined 65.87, or 1.6%, to close at 3935.18. The $Dow Jones Industrial Average(.DJI.US)$ fell 326.63, or 1%, to 31834.11, while the technology-focused $Nasdaq Composite Index(.IXIC.US)$ was down 373.44, or 3.2%, to 11364.24, its lowest close since November 2020. The day offered no relief for anxious stock investors, who have been bracing for the Fed to remove more of its economic support.
Trading was bumpy. The S&P 500 turned lower in the afternoon after spending much of the morning in the green, and its losses deepened as the closing bell neared. There is a long way to go before rising prices come back under control, investors and analysts warned, giving rise to volatility as financial conditions continue to tighten.
The Band-Aid is still coming off slowly. According to the Fed, we're not near the end of this process that everyone wants over.
- said Michael Farr, the chief executive of investment advisory Farr, Miller & Washington.
The consumer-price index increased 8.3% in April from the same month a year ago, data released Wednesday morning showed, decelerating from an 8.5% annual rate in March but above the 8.1% expected by economists. Lower annual inflation last month marks the first monthly easing of price increases since August 2021.
Volatile markets have been primed to react strongly to any headline hinting at persistent price pressures, said David Kotok, chief investment officer at Cumberland Advisors. "We're in those kinds of crazy times," he said.
The inflation data sent short- and long-term government-bond yields converging, which investors said signaled concerns about tighter monetary policy and growth. The yield on the two-year Treasury note--highly responsive to expected Fed tightening--rose to 2.629%, from 2.623% at Tuesday's settlement. The yield on the 10-year Treasury, meanwhile, declined to 2.918%, from 2.990% a day earlier. Bond yields fall as prices rise.
Riskier assets continued to suffer. Niche pharmaceutical companies were among the Nasdaq's biggest losers on the day, with larger tech firms such as $Netflix(NFLX.US)$ and Facebook parent $Meta Platforms(FB.US)$ both declining more than 4%. In the unpredictable world of cryptocurrency, bitcoin lost more ground and continued to trade more than 50% off of its all-time highs from last year.
More speculative bets like investments in growth-oriented stocks and crypto have been slammed this year. Higher interest rates set by the Fed translate into greater returns on safe assets, dimming the appeal of far-off profits. The central bank last week lifted rates by half a percentage point, the biggest rise since 2000, and approved a plan to shrink its $9 trillion asset portfolio, kicking into a higher gear its campaign to rein in 40-year-high inflation.
Aoifinn Devitt, chief investment officer at investment advisory Moneta, said she has been guiding clients toward investments grounded in the real economy, such as in the energy and infrastructure sectors, because of those sectors' relative strength amid inflation. The selloff among tech stocks, she noted, has been "indiscriminate."
It's probably a sign of fear that has entered the retail investor complex.
- Ms. Devitt said.
Riskier corners of the market got little comfort on Wednesday. Bitcoin's recent selloff, and a downbeat quarterly report Tuesday, contributed to declines for $Coinbase(COIN.US)$. Its shares slid $19.27, or 26%, to $53.72 after the cryptocurrency exchange said its users declined from the previous quarter. Shares of $Unity Software(U.US)$ plunged $17.83, or 37%, to $30.30 after the videogaming software developer widened its loss and gave second-quarter revenue guidance below analysts' expectations.
$Kohl's Corp(KSS.US)$'s stock fell $2.74, or 5.6% to $46.65 as shareholders rejected an activist investor's push to replace up to 10 directors as the retailer is exploring a potential sale. $Switch(SWCH.US)$ rose $2.79, or 9.1%, to $33.54 after the computer-services company said it was being taken private by a consortium of investors.
On the other hand, strong earnings reports from some companies drove gains. Shares of $Electronic Arts Inc(EA.US)$ rose $8.89, or 8%, to $120.49 after the videogame company said revenue in the latest fiscal year rose 24% to $6.99 billion. Doughnut chain $Krispy Kreme(DNUT.US)$ logged a rise of 46 cents, or 3.8%, to $12.67 after reporting earlier Wednesday that net revenue jumped 16% year over year in the three months through March.
Oil prices climbed. Brent crude, the global benchmark, rose $5.05 a barrel, or 4.9%, to settle at $107.51 a barrel.
Overseas markets were broadly higher. The Stoxx Europe 600 gained 1.7%, led by shares of auto and real-estate companies. In Asia, Hong Kong's $Hang Seng Index(800000.HK)$ gained 1% and the $SSE Composite Index(000001.SH)$ added 0.8%.
Write to Joe Wallace at joe.wallace@wsj.com and Matt Grossman at matt.grossman@wsj.com
美国股市周三下跌,此前公布的最新数据显示,尽管通胀有所放缓,但上个月的通胀率仍高于预期,这再次引发了人们对美联储(Federal Reserve)可能采取的应对措施的担忧,并延续了股市的不利走势。
$标准普尔500指数(.SPX.US)$收盘时下跌65.87点,跌幅1.6%,收于3935.18点。$道琼斯工业平均指数(.DJI.US)$下跌326.63,跌幅1%,至31834.11点,而$纳斯达克综合指数(.IXIC.US)$下跌373.44,至11364.24点,跌幅3.2%,为2020年11月以来的最低收盘点位。这一天并没有让焦虑的股票投资者松一口气,他们一直在为美联储取消更多经济支持做准备。
交易起伏不定。标准普尔500指数在上午的大部分时间都在上涨中度过后,在下午走低,随着收盘钟声的临近,其跌幅进一步加深。投资者和分析师警告称,随着金融环境持续收紧,房价上涨要重新得到控制还有很长的路要走,这会引发波动。
创可贴仍在缓慢地取下。根据美联储的说法,我们还没有接近这个每个人都希望结束的过程的结束。
-投资咨询公司Farr,Miller&Washington的首席执行官迈克尔·法尔说。
周三上午公布的数据显示,4月份消费者价格指数同比上涨8.3%,涨幅低于3月份8.5%的年率,但高于经济学家预期的8.1%。上个月较低的年通胀率标志着自2021年8月以来价格涨幅首次出现月度放缓。
坎伯兰顾问公司(Cumberland Advisors)首席投资官大卫·科托克(David Kotok)表示,动荡的市场已做好准备,对任何暗示价格压力持续存在的头条新闻做出强烈反应。“我们正处于那种疯狂的时代,”他说。
通胀数据导致短期和长期政府债券收益率趋同,投资者说,这表明了对收紧货币政策和经济增长的担忧。对美联储收紧政策反应强烈的两年期美国国债收益率升至2.629%,周二结算时为2.623%。与此同时,10年期美国国债收益率跌至2.918%,前一天为2.990%。债券收益率随着价格上涨而下降。
风险较高的资产继续受到影响。利基制药公司是纳斯达克当天最大的输家之一,较大的科技公司,如$Netflix(NFLX.US)$还有Facebook母公司$Meta平台(FB.US)$两者的跌幅都超过4%。在不可预测的加密货币世界中,比特币失去了更多的市场份额,继续从去年的历史高点下跌逾50%。
今年,更多的投机性押注,如投资成长型股票和加密,受到了猛烈抨击。美联储设定的更高利率转化为安全资产的更高回报,削弱了远距离利润的吸引力。央行上周加息0.5个百分点,这是自2000年以来的最大加息幅度,并批准了一项缩减其9万亿美元资产组合的计划,从而加快了遏制40年来高通胀的行动。
投资咨询公司Moneta的首席投资官Aoifinn Devitt说,她一直在引导客户投资于实体经济,比如能源和基础设施行业,因为这些行业在通胀中相对强劲。她指出,科技股的抛售是“不分青红皂白的”。
这可能是散户投资者复合体中出现的恐惧迹象。
--德维特说。
周三,市场上风险较高的领域几乎没有得到什么安慰。比特币最近的抛售,以及周二发布的悲观季度报告,导致比特币价格下跌。$Coinbase(COIN.US)$股价下跌19.27美元,跌幅26%,至53.72美元,此前加密货币交易所表示,其用户较上一季度有所下降。$Unity Software(美国)$,这家视频游戏软件开发商股价暴跌17.83美元,跌幅37%,至30.30美元,此前该公司扩大了亏损,并公布了低于分析师预期的第二季度营收指引。
$Kohl‘s Corp(KSS.US)$股价下跌2.74美元,跌幅5.6%,至46.65美元,原因是股东拒绝了一位维权投资者提出的更换至多10名董事的要求,因为这家零售商正在探索出售的可能性。$Switch(SWCH.US)$股价上涨2.79美元,涨幅9.1%,至33.54美元,此前这家计算机服务公司表示,将被一个投资者财团私有化。
另一方面,一些公司强劲的收益报告推动了上涨。$艺电公司(EA.US)$股价上涨8.89美元,涨幅8%,至120.49美元,此前该公司表示,上一财年营收增长24%,至69.9亿美元。$Krispy Kreme(DNUT.US)$股价上涨46美分,涨幅3.8%,至12.67美元,此前该公司周三早些时候公布,截至3月份的三个月净收入同比增长16%。
油价攀升。全球基准布伦特原油价格上涨5.05美元,收于每桶107.51美元,涨幅4.9%。
海外市场普遍走高。斯托克欧洲600指数上涨1.7%,汽车和房地产类股领涨。在亚洲,香港的$恒生指数(800000.HK)$上涨1%,$上证综合指数(000001.SH)$增加了0.8%。
写信给乔·华莱士:joe.wallace@wsj.com和马特·格罗斯曼:matt.grossman@wsj.com