Stocks crater in volatile trade, Tether rattled, Bitcoin trying to stabilize,

Today is one of those days when you shouldn’t be logging into your retirement accounts. U.S. stocks face relentless selling pressure as investors trim their earnings outlook given the unclear outlook for economic growth and the U.S. consumer. Today’s PPI report did little to change the outlook with inflation, suggesting price pressures remain uncomfortably high. Apple shares fell into bearish territory on fears that future earnings growth could be at risk given that inflationary pressures do not ease sharply.

If you’re considering taking advantage of some of these discounts, know that we haven’t seen a sellout yet. Some Wall Street traders believe a stock market bottom is approaching, but confidence in this call is not exactly high. Persistent inflation, uncertainty with commodity prices impacted by the war in Ukraine and the COVID situation in China are all near-term risks that could lead to aggressive Fed tightening later in the year. , which prevents some investors from taking advantage of the massive discounts. through the stock market.

Cryptos Rebound

Where do I start? The Stablecoin chaos and loss of confidence with cryptos has now been followed by a rebound. Tether, a true asset-backed stablecoin, saw its $1-to-dollar peg broken as contagion spilled over from TerraUSD, the algorithmic stablecoin crashed.

Bitcoin fell victim to the sell-off of risky assets in the market, but the latest crisis with stablecoins triggered the collapse of the USD 30,000 level, which was a key entry point for many institutional investors. Confidence has waned in the cryptoverse, but it looks like we are nearing the end of the market selloff.

Bitcoin rebounded from $25,424, but that won’t last unless risk appetite stabilizes soon. Bitcoin is still vulnerable to a final plunge that could coincide with a stock market selloff, before many crypto investors feel the bottom is in place.

This article is for general information purposes only. It is not investment advice or a solution for buying or selling securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for everyone. You could lose all your deposited funds.

With over 20 years of trading experience, Ed Moya is a senior market analyst at OANDA, producing up-to-the-minute cross-market analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. . His particular expertise covers a wide range of asset classes including currencies, commodities, fixed income, equities and cryptocurrencies. During his career, Ed has worked with some of Wall Street’s leading forex brokerages, research teams and information services, including Global Forex Trading, FX Solutions and Trading Advantage. Most recently, he worked with, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks, including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His opinions are endorsed by the world’s most renowned news agencies including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.

Ed Moya

Ed Moya

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