Fed Chairman Powell’s speech did not reveal any signals to act for a pickup in Inflation this year, as U.S. bond yields spiked intraday and U.S. stocks accelerated their downside, extending the previous killing trend led by technology stocks. Energy stocks, which are supported by rising Crude Oil, continued to play a role in supporting the broader market, spurred by Saudi Arabia’s intention to continue additional production cuts and OPEC+’s decision not to increase production.
Prior to Powell’s speech, U.S. stocks had already experienced a flash crash in early trading on Friday.
The three major U.S. stock indexes opened collectively higher on Friday, but the early trading quickly all the early gains to turn down, the Nasdaq composite index rose more than 0.5% at the beginning of the session in less than an hour after the opening had fallen more than 1.6%, once back to all the cumulative gains since the beginning of this year. Nasdaq brushed a new daily low at the same Time, the Dow Jones Industrial Average, which rose more than 180 points at the beginning of the day, fell more than 120 points, the S&P 500 index, which rose nearly 0.5% at the beginning of the day, fell nearly 0.8%. The Dow and S&P quickly turned up after that.
Powell speech mentioned that the recent volatility in the bond market caught his attention, is expected to resume work may push up inflation, but that is a temporary pickup, said if the financial environment continues to tighten, threatening to achieve the Fed’s inflation and employment targets, he would be concerned. The commentary said Powell did not give any hint of addressing the recent rise in interest rates as some investors had expected.
During Powell’s speech, the three major U.S. stock indexes again turned down collectively. 10-year U.S. bond yields briefly pulled up more than 8 basis points to refresh the daily high, rising above 1.50%. After his speech, the three major stock indexes to refresh the daily low, the Nasdaq fell more than 3.4%, the Dow fell more than 720 points, and the S&P fell more than 2%, the S&P maximum decline of more than 2.5%.
Friday morning media quoted OPEC+ representative news that Saudi Arabia is ready to continue voluntary additional oil production cuts in April and May, of which the scale of production cuts in April is still 1 million barrels per day; OPEC+ is close to reaching a consensus that it may maintain the same oil production policy in April and will not reduce the scale of production cuts. Since then, the intra-day gains in international crude oil futures have expanded to more than 5%. Among the 11 major sectors of the S&P 500, energy was still up more than 2% at midday, well ahead of other sectors, with the information technology sector down more than 2% and continuing to lead losses.
The Nasdaq fell more than 1% in early trading, Apple fell more than 1% after rising more than 0.6% at the beginning of the session, tesla fell more than 5.5% during the day, betting on Tesla’s “bull market queen” Cathie Wood led fund ARKK also fell more than 5%. Philadelphia Semiconductor Index fell 2%, MRVL fell 8%, Seagate Technology fell more than 5%, IPHI and LSCC fell more than 4%.
On Friday, longtime Tesla shareholder and billionaire Ron Baron said his company sold 1.8 million shares of Tesla stock because it was too large a portion of the portfolio and selling Tesla stock would “mitigate risk for our clients. Baron said that each sale of a share of Tesla is painful, but his own personal more than 1.1 million shares of Tesla shares have not moved at all, still bullish Tesla shares to $ 2,000.
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