Stocks fell sharply today after comments from U.S. Federal Reserve Governor Lael Brainard. Considered one of the more dovish Fed members, Brainard hinted that the central bank could soon shrink its balance sheet "rapidly" in response to rising inflation. Investors are monitoring the Russia/Ukraine crisis as well, while recession concerns picked up after Deutsche Bank's forecast. As the 10-Year treasury yield jumped to its highest level since May 2019, the tech-heavy Nasdaq was hit the hardest, logging its worst single-day session since March 7.
Meanwhile, in economic data out today, the Institute for Supply Management (ISM) services index rose 1.8 points to 58.3% in March, breaking a three-month streak of declines and signaling faster economic expansion. Plus, after hitting an all-time high the previous month, the U.S. trade deficit inched 0.1% lower in February.
The Dow Jones Average (DJI - 34,641.18) fell 280.7 points or 0.8% for the day. UnitedHealth Group (UNH) led the gainers with a 1.3% rise, while Boeing (BA) dropped to the bottom of the index with a 4.3% loss.
The S&P 500 Index (SPX - 4,525.12) lost 57.5 points, or 1.3%, for the day, while the Nasdaq Composite (IXIC - 14,532.55) shed 328.4 points, or 2.3% in today's session.
Lastly, the Cboe Market Volatility Index (VIX - 21.03) added 2.5 points or 13.3% for the day.
OIL, GOLD MOVE LOWER
Oil prices settled lower today, though still above the psychologically-significant $100 level. May-dated crude fell $1.32, or 1.3%, to settle at $101.96 a barrel.
Gold futures moved lower today, as investors weighed the commodity amid rising bond yields and lingering inflation concerns. June-dated gold fell $6.50, or 0.3%, to settle at $1,927.50 an ounce.
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