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US English

US market close: Shares tank on inflation data

By Joseph Toppe

20:55, 10 February 2022

Wall Street trader
Gold logs best mark in four weeks as US dollar drops on euro - Photo: Shutterstock

US inflation rose to a 40-year high in January, sending stocks into a freefall on Thursday.

The Dow Jones Industrial Average (US30) lost 526 points, or 1.47%, the S&P 500 went down 1.81%, while the Nasdaq Composite (US100) lost 2.10%.

Halfway through the session, the Dow was down approximately 150 points, or 0.42%, the S&P was down around 0.57%, and the Nasdaq was roughly 0.63% lower.

Inflation highest in 40 years

The disparity between American supply and demand has grown to levels not seen since 1982, as US inflation boiled to over 7% in January and consumers spent more on food and electricity.

The latest data compiled by the US Labor Department shows the Consumer Price Index for all urban consumers (CPI-U) went up 0.6% last month on a seasonally adjusted basis, while the all-items index ballooned to 7.5% before seasonal adjustment.

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Winners & losers: Tech down

Shares of airplane manufacturer Boeing are up 1.34%, while in the auto sector, shares of Tesla dropped 2.95% and General Motors slipped 0.75%.

In the technology sector, shares of Meta fell 1.69%, Twitter went 1.98% lower, as Snap went up 0.84% and Pinterest dipped 4.66% lower.

In other tech stocks, shares of Microsoft are down 2.84%, Nvidia is 3.30% in the red, while Intel is off 2.10% and Alphabet is also 2.10% lower.

US100

18,549.60 Price
+0.020% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 7.0

HK50

19,724.90 Price
+0.810% 1D Chg, %
Long position overnight fee -0.0225%
Short position overnight fee 0.0005%
Overnight fee time 21:00 (UTC)
Spread 30.0

US30

39,997.70 Price
+0.360% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 11.0

US500

5,305.70 Price
+0.240% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 1.7

Oil: Crudes mixed

Oil futures were up and down on Thursday as West Texas Intermediate crude for March delivery tacked on 22 cents, or nearly 0.3%, to $89.88 a barrel on the New York Mercantile Exchange, and April Brent crude lost 14 cents, or nearly 0.2%, to $91.41 a barrel on ICE Futures Europe.

In energy stock, shares of Hess retreated 0.98% and Exxon Mobil went down 0.96%.

Gold: Highest since January

Gold futures went up on Thursday with April gold futures adding 80 cents, or less than 0.1%, to settle at $1,837.40 an ounce.

Crypto: Bottoms out

Prominent cryptocurrencies were green early on Thursday but fell hard in afternoon trading with bitcoin down 1.32%, ethereum down 4.47%, while litecoin and monero slipped 2.76% and 0.87% respectively.

In other digital assets, bitcoin cash is off 0.91% and dogecoin is 4.16% in the red.

Treasury: Yields hop

Yields on 10-year Treasury notes improved to 1.987% today from 1.928% on Wednesday, while the yield on two-year notes went up to 1.493% from 1.346%.

Forex: USD loses step

On Thursday, the US dollar slipped to $0.87 of the euro, while holding at $0.74 of the British pound sterling and $1.27 of the Canadian dollar.

Markets in this article

GOOGL
Alphabet Inc - A (Extended Hours)
176.57 USD
2.48 +1.430%
BCH/BTC
Bitcoin Cash / Bitcoin
0.00749 USD
0.00036 +5.160%
BCH/USD
Bitcoin Cash / USD
492.00 USD
26.25 +5.620%
BA
Boeing Co (Extended Hours)
185.00 USD
1.91 +1.050%
BA
Boeing Co (Extended Hours)
185.00 USD
1.91 +1.050%

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Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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