[서울=뉴스핌] Reporter Ko In-won = US stock index futures prices are falling amid fears of persistent inflation ahead of the release of the US producer price index (PPI) for April.
As of 8:06 am eastern time on May 12, the Chicago Mercantile Exchange (CME) S&P 500 futures (hereafter referred to as E-mini) were priced at 3893.25 points, down 0.94% from the previous closing price. Nasdaq 100 futures are down 1.36% and Dow futures are down 0.60% (191 points), respectively.
| Americans lined up in front of the BJ Wholesale Club store [사진=로이터 뉴스핌] |
The US Consumer Price Index (CPI), announced the day before, rose 8.3% year-on-year, still hovering near the 40-year high (8.5%) recorded in March and exceeding the market consensus (8.1%). As a result of disappointing the market that was expecting an inflation ‘peak out’, the sell-off accelerated mainly in the US stock market and risky assets such as Bitcoin.
“Stocks are going downhill all over the world,” said Adam Crispully, founder of Vital Knowledge.
During the regular session of the previous day, the Dow Jones Industrial Average fell 326 points, the S&P 500 fell 1.65% and the Nasdaq fell 3.18%, respectively. As a result, the S&P 500 is down more than 18% from its previous high and is on the verge of entering a bear market (down 20% from its previous high). The Nasdaq is down nearly 30% from its previous high.
Bitcoin temporarily plunged below $27,000 as the market temporarily panicked due to the depegging of the algorithmic stablecoin TerraUSD (UST) and the sharp drop in its sister coin Luna (LUNA). It has now recovered to the $28,000 level.
Shares of companies known to hold Bitcoin also fell before the opening, leading to a decline of 3.8% for Tesla (stock name: TSLA) and nearly 10% for MicroStrategy (MSTR).
Disney (DIS) shares are falling more than 5% before opening due to mixed earnings announcements. Disney’s streaming platform Disney+ has seen more subscribers than expected, but the company has warned of the impact the coronavirus will have on Disney’s theme parks in Asia.
Shares of Apple, which plunged 19.9% the previous day, are also down more than 1% before opening. If the company’s stock price fails to rebound on that day, it will officially enter a bearish phase.
Nevertheless, Tom Lee, director of Destrat Global Advisors, a leading bulls on Wall Street, is optimistic, “If the market finds its way, we can expect double-digit expected returns.”
He pointed out, “The sell-off in the US stock market is accelerating, and it is interesting that bond yields and the Chicago Board Options Exchange (CBOE) Volatility Index (VIX), which usually panic when this happens, are relatively stable.”
He noted that over the four months since 1940, the major U.S. stock indexes fell by an average of 16% on 16 of the 16 occasions, 12 of which recovered after six months.
Following the April CPI yesterday, the producer price index (PPI), which will measure the wholesale price of the US, is scheduled to be released today. Wall Street analysts predicted that the U.S. producer price index (PPI) rose 0.5% in April from the previous month, and that the pace of growth has slowed from 1.4% in March.
The April PPI is scheduled to be released on the 12th at 9:30 pm Korean time, and the number of new unemployment claims will also be announced at the same time.
koinwon@newspim.com