Market Momentum Grinds To A Halt

It’s a rough day for the overall market. Treasury Secretary Janet Yellen spooked the market earlier with her comments that interest rates may need to go up to help stem inflation and keep the economy from overheating. The benchmark 10-year Treasury, however, is down again today to 1.58%.

The Nasdaq is getting hit hard, was down 3%,  but now is off 2.5%.  If it closes in the red, this would be the 4^th consecutive down day.  The S&P 500 is lower by 1.5% and is 3% away from testing its 50-day moving average of 4,132.  Semiconductors are getting hit hard and talks of a correction in chips are mounting.  The volatility index, or the VIX, is up almost 18% to 21.60.  The Dow is the best performer, down 0.5%. 

Only 3 S&P sectors are up, with Energy once again higher.  Technology is the worst performer and many names at or nearing correction levels.

Breadth is decidedly negative as is the down volume. Interestingly, there are more new highs on the NYSE. 

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On the economic front, the U.S. trade deficit widened to $74.4 billion in March, a new record, from February’s revised $70.5 billion. For the quarter, the average real deficit is $99.4 billion, 5.5% greater than in the fourth quarter.  Exports and imports both rose sharply as demand increased for both business and consumers.  Exports rose 6.6%, or $12.4 billion to $200 billion, as industrial supplies and materials rose $5.2 billion, while capital goods rose $2.9 billion. Travel and transportation exports were also up. Imports rose 6.3%, by $16.4 billion to $274.50 billion, led in large part by a $4.5 billion increase in consumer goods and $3.7 billion rise in industrial supplies and materials.

To see the chart, click here.

Let’s see if any buyers emerge into the close.