On Thursday, a widespread selloff occurred on average in the three major stock markets, only a day after the S&P 500 hit a new closing high, strategists and investors analyzed what could be the cause of the move. Walmart led Dow Jones’ industrial average to fall, down more than 6% after the country’s largest retailers’ weaker earnings forecasts, saying profit growth will slow in the current fiscal year. “Given that we’ve gone through this income (season), one thing I can’t see is that catalysts really make the market explode higher,” said Jay Woods, chief global strategist at free capital markets. “Currently,” said Jay Woods. , we can slowly and stably. We can see the rotation under the surface. It’s all positive. We’re stirring. We’re digesting growth.” According to FactSet, Walmart’s vision price ratio almost reached There were 38, the highest in 20 years. Wal-Mart nearly doubled last year, climbing 72%. “Unless there is a blowout beat and a pay raise, this is the most likely reaction to the guidance that year’s more cautious,” said Ken Mahoney Asset Management CEO. For the broader market, “it looks like a retest,” said Ken Mahoney. Back to the 50-day (moving average) journey, so in our eyes, nothing really hears the alarm bell.” Palantir also hurts emotions on Thursday, down 5% after sliding about 10% on Wednesday. The company’s CEO Alex Karp has revealed a new stock sales plan, while the Washington Post said Secretary of Defense Pete Hegseth plans to bring U.S. defense annually Budget cuts by 8%. “They lowered slow and steady stocks and then lowered high octane stocks,” said Larry Tentarelli, chief technical strategist for Blue Chip Daily Trends Report. “So you’re a little bit selling,” said Larry Tentarelli, chief technical strategist for Blue Chip Daily Trends Report. .” Palantir sold for 62 times just two weeks ago, the highest of any company in the 500 index at the time. JC O’Hara, chief technical strategist at Roth Capital Partners, told CNBC that he soared about 341% in 2024. “Walmart is one of the signals that consumer behavior may be changing or may become more conservative in terms of spending. So, I think managers are looking at their portfolios again and becoming more cautious.” Fed officials “stubbornly Inflation has increased tension on Wall Street, when several said Thursday that they expected interest rates to remain stable until there is more evidence that inflation is close to its 2% target. St. Louis Fed Chairman Alberto Musalem pointed out that although he believes the price increase will continue to be lowered, “the risks of moving higher appear to be tilting upward.” As a result, the strategy should “maintain moderate limits”, now and then gradually ease at some point later. Musalem assumes additional weight this year as a voter member of the Federal Open Market Committee set. Similarly, Atlanta Fed President Raphael Bostic said he was concerned that inflation might keep rising, pointing to potential pressures on tariffs and immigration policies. “It’s not time to complacency,” Bostic warned. “The economy faces higher uncertainty. The abnormal macroeconomic dynamics that lead us to enter this happy place may not last,” said Bostic, who is not a FOMC voter. The Philadelphia Fed’s manufacturing survey of February showed that the prices paid and the prices received rose. O’Hara said he believes these numbers have increased the inflationary focus among investors. “After the FOMC, your inflation is basically stubborn, basically saying they’re on the shelves, and tomorrow you have the inflation expectations of the University of Michigan,” O’Hara said. “You put everything together, tomorrow you’re There could be an uptrend inflation shock.” Frank Gretz, a technical analyst at Wellington Shields, noted that more than half of the NYSE stocks traded above its 200-day moving average Level, this is a rare unusual 50-50 points. “For me, it shows that half of the NYSE stocks are on a downward trend against new all-time highs, against S&P,” he said. “It’s not a healthy technical background.” Others are more optimistic. Robert Ruggirello of Brave Eagle Wealth Management believes that even if the latest drops are, the S&P 500 S&P 500 has not dropped below 6,000. “The S&P 500 has been able to stay above 6,000 for some time, which is an encouraging sign as the index hopes to continue climbing the wall of concern,” said Brave Eagle’s chief investment officer. Ari Wald said that milder returns would be normal after the stocks are strong back-to-back age. “The weakness today is not over-destroying and is still in the context of the market trend still higher,” he told CNBC. “It’s still a one-person market, no, and you have to choose a little better place than the last two years, Everything was coming together at the time.” – Sarah Min, Brian Evans, Alex Harring, Jesse Pound and Jeff Cox of CNBC contributed the report.
What’s behind Thursday’s sell-off | Real Time Headlines
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