Wall Street witnessed one of the worst sessions since the beginning of the year, with widespread declines across the board as stocks were hit by the impact of a higher-than-expected inflation report.
The Consumer Price Index (CPI) rose at a 3.1% annual rate in January, down from December's 3.4% but surpassing expectations of 2.9%. Core inflation, which excludes energy and food prices, unexpectedly remained steady at 3.9%, failing to meet the anticipated decline to 3.7%. Monthly fluctuations also exceeded expectations, causing ripples in interest rate forecasts.
Traders swiftly adjusted their positions, lowering their expectations for rate cuts in 2024. March is now completely off the table, with the likelihood of the first cut by June at 76%, and almost fully priced by July. The anticipated number of rate cuts for 2024 has been reduced to four, down from nearly six just a couple of weeks ago.
Treasury yields surged across the board, with the 2-year yield rising by 15 basis points to 4.60%, and the 10-year yield by 10 basis points to 4.29%. The widely followed iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) plummeted 1.3%, reaching lows last seen in early December 2023.
Essentially, every major asset except the U.S. dollar saw declines on Tuesday. Volatility spiked once again, with the CBOE Volatility Index or VIX rising by 8%. Small-cap stocks were hit hardest, with the iShares Russell 2000 ETF (NYSE:IWM) dropping over 3%.
Bitcoin (CRYPTO: BTC) slumped by 1.5% after reaching $50,300 overnight, while gold, as tracked by the SPDRGold Trust (NYSE:GLD), fell below $2,000 an ounce for the first time in two months.
Tuesday's Performance In Major Indices, ETFs
Major Indices & ETFs
Price
%
S&P 500
4,953.69
-1.4%
Dow Jones
38,218.67
-1.5%
Nasdaq 100
17,611.80
-1.5%
Russell 2000
1,944.94
-3.5%
CBOE VIX
15.05
8.0%
The SPDR S&P 500 ETF Trust (NYSE:SPY) was 1.4% lower to $493.76, the SPDR Dow Jones Industrial Average (NYSE:DIA) fell 1.5% to $382.25 and the tech-heavy Invesco QQQ Trust (NASDAQ:QQQ) dropped 1.6% to $436.72, according to Benzinga Pro data.
None of the eleven sectors comprising the S&P 500 experienced gains on Tuesday. The Real Estate SPDR Select Sector Fund (NYSE:XLRE) recorded the largest decline, dropping by 2.7%, closely followed by the Utilities SPDR Select Sector Fund (NYSE:XLU), down 2.2%.
Industry-wise, gold miners, tracked by the VanEck Gold Miners ETF (NYSE:GDX), and solar stocks, monitored through the Invesco Solar ETF (NYSE:TAN), were the underperformers, declining by 5.5% and 5%, respectively.
Tuesday's Stock Movers
Biogen Inc. (NASDAQ:BIIB) fell 7.5% after the company missed both earnings and revenue estimates last quarter.
SSR Mining Inc. (NASDAQ:SSRM) fell 60%, marking the worst performance among Russell 1000 stocks, on suspension of operation at a mine in Turkey.
Other companies reacting to earnings were Waste Management Inc. (NYSE:WM), Coca-Cola Company (NYSE:KO), down 1.7%, Moody's Corp. (NYSE:MCO), down 7.6%, Marriot International (NASDAQ:MAR), down 6.3%, Zoetis Inc. (NYSE:ZTS), down 6%, Ecolab Inc. (NYSE:ECL), up 8.8%, Datadog Inc. (NASDAQ:DDOG), down 4.3%.
Companies reporting after the closing bell are Airbnb Inc. (NASDAQ:ABNB), American International Group Inc. (NYSE:AIG), Welltower Inc. (NYSE:WELL).
Read now: Economists Sound Alarm On Inflation's Stubborn Grip: 'No Chance Inflation Will Return To 2%' Without New Rate Hikes
2年債券利回りが15ベーシスポイント上昇し、4.60％に、10年債券利回りが10ベーシスポイント上昇し、4.29％に急上昇しました。広く注目されているiShares 20＋ Year Treasury Bond ETF（NASDAQ：TLT）は1.3％下落し、2023年12月初旬以来の低水準に達しました。
基本的に、米ドル以外の主要資産はすべて火曜日に下落しました。CBOEボラティリティインデックスまたはVIXは8％上昇し、小型株は最も被害を受け、iShares Russell 2000 ETF（NYSE：IWM）は3％以上下落しました。
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オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
