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.
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.
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