Welcome to MarketBites! Here's all you need to know about yesterday's market news.
"Well done is better than well said."
PORTFOLIO MANAGER COMMENTARY
Stocks took a sharp dive on Thursday to continue a sell-off that took a short break on Wednesday following the U.K.’s bond intervention announcement. The S&P 500 fell 2.11%, the Nasdaq dropped 2.84%, and the Dow declined 1.54%. The sell-off was broad-based and led by Apple, which fell 4.9% after a major investment bank downgraded the one-time bear market outperformer.
A stronger-than-expected jobless claims report worried investor sentiment about future rate hikes. This built on the notion that the Fed will keep raising interest rates without concern for the labor market as well as a recession. According to UBS’ Mark Haefele, “For a more sustained rally, investors will need to see convincing evidence that inflation is coming under control, allowing central banks to become less hawkish.”
Carmax stock ($KRX) dropped 24.6% yesterday on its worst trading day in more than 20 years after missing earnings expectations by a significant margin.
CHART OF THE DAY
Mortgage rates have risen to 6.7% which is their highest level in more than 15 years. This week's rate is up from the 6.29% rate one week ago. Moves that large in a single week have only occurred a handful of times since Freddie Mac started tracking them more than 50 years ago.