Nasdaq futures fall over 1% on inflation worries

Nasdaq futures dropped more than 1% on Tuesday, potentially presaging another day of losses for technology-related stocks with perceived high valuations on worries over inflation.

Nasdaq futures fall over 1% on inflation worries

Medha Singh for Reuters:

Shares of Apple, Facebook Inc, Amazon.com Inc, Netflix Inc and Google-parent Alphabet Inc dropped between 1% and 2% in premarket trading, while Tesla Inc fell nearly 4%.

The yield on benchmark U.S. 10-year Treasury note ticked up to 1.604% ahead of consumer price index report on Wednesday, with investors fearing that a strong reading could prompt the Federal Reserve to alter its ultra loose monetary policy.

“It seems to be a combination of inflation fears making a comeback and some market participants moving higher along the value spectrum, cutting their exposure to anything with a stretched valuation,” said Marios Hadjikyriacos, investment analyst at online broker XM in Cyprus.

MacDailyNews Take: ‘Tis best to get a handle on inflation, if you know how, while you still can.

Inflation is repudiation. — Calvin Coolidge

When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill. And when government does it for 40 years, the bill comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

21 Comments

    1. Why was it shocking? Janet Yellen is an idiot. Brought back to do more damage by another idiot.

      The idiot Yellen in 1995: “When the goals conflict and it comes to calling for tough trade-offs, to me, a wise and humane policy is occasionally to let inflation rise even when inflation is running above target.”

      Inflation acts as a hidden tax on savers. It devalues the purchasing power of their savings. It kills any retiree living on a fixed income or a hardworking prudent individual trying to save for their retirement. Policies of inflation are not “wise and humane,” they are deceptive and cruel.

    2. Almost worse is her concern/focus on global warming. It aligns with the truth that few acknowledge about the global warming thing…it’s more about wealth distribution than actual saving of the environment. Take a moment to read the Paris Accord to see this intertwining through what’s supposed to be a “saving the environment” pursuit.

  1. “…if you know how…”

    Biden doesn’t even know how to change his own diaper, so 1,274 days of an ever-increasing Misery Index to go!

    FYI: The lowest (best) Misery Index average ever recorded by a U.S. President was 6.60 (TRUMP) and the highest (worst) was 16.26 (CARTER).

    1. The U.S. Misery Index is currently at 8.620, up from 7.876 last month and up from 5.939 one year ago. This is a change of 9.44% from last month and 45.13% from one year ago.

      The WORST EVER U.S. misery index was 21.98 in 1980 at the (blessed) end of the CARTER administration.

      The biggest drop ever achieved by a U.S. President was made by REAGAN who inherited a 19.33 Misery Index from CARTER and dropped it 9.61 points to end his presidency at 9.72.

  2. Tens of billions of dollars in share buybacks the past year and this one have not prevented AAPL from getting absolutely destroyed the past week. A wholesale, relentless liquidation of Apple positions is now underway. Massive volume has investors dumping Apple stock.

    Tim Cook’s determination to incinerate hundreds of billions of dollars in cash looks more and more like an epic fail.

    1. iAm buying right now DUH! Buy on dips? Accumulate over time? Long term investing?

      AAPL shareholder since 1994. Apple is in a league of its own. The rest is just NOISE. 😉

      Thanks for you FUD… iMean NOISE.

        1. We stopped listening, Chicken Little.

          “Inflation Fears” are just that. Unfounded fears. You could see for yourself that Apple fundamentals are as strong as they have ever been. Do you believe in fundamentals when you pick investments, or are you a fear-driven investor? Perhaps you need more intestinal fortitude to weather the turbulence.

          Even if you can’t, the Fed can see that momentary gas price shocks caused by Russian hackers do not make massive runaway inflation. The Fed isn’t going to act on short term events; they will take action only when actual inflation pushes past their target.

          1. To paraphrase the snide attitude of another poster: Facts are fun — if you use all of them, instead of the cherry picked ones that suit your short term political goals. But you have to work to understand the facts, instead of repeating the FUD that the bitter disenfranchised spread with impunity.

          2. Fundamentals may be good, but that doesn’t mean a company stock can’t/won’t drop precipitously. There are PLENTY of good “value” companies, but for the last decade, if you looked at their share price, you’d never know it they were good or value stocks.

            Btw, relying on the Fed for truth is funny. They’ve been planning, expecting and hoping for a little inflation for about a decade, but it’s never really shown itself. It’s also the entity that’s most responsible for the devaluation of the currency.

            A small tidbit, there’s double digit cost increases on numerous items…unrelated to an event like the gas hack. These price increases have been building for at least a yr.

    2. Did you read the article? Everybody is down. The company run by Elon Musk, the guy the Cook critics keep pointing to as an innovative genius, is down twice as much as Apple. We have been in a pandemic that has constrained both supplies and demand. As we recover, demand has risen faster than supplies could keep up, pushing up prices. Duh.

      1. As i type this the NASDAQ is rallying strong. Apple? Nope….still down hard with massive volume to the down side. Tim Cook’s refusal to have a realistic dividend means that Apple incinerates cash month after month. Apple bought back 60 billion in shares last year. All that money has been incinerated. Were it given to shareholders, it would be in their pockets.

        Tim Cook is an abject failure. Everybody down. LOL. AAPL is down for the year. IBM, waaaaaaay up.

  3. Just WAIT until something severe happens to geriatric JoeChina. He is going to Hell in a bucket…. & my educated guess??? He ain’t enjoying THE RIDE! He WILL stumble and FALL!

    Like a big tree and my small axe. We are ready to cut him DOWN! 😉 2022-2024

    JoeCHINA has been compromised by the CCP… Period.dot. end of story. He is a disgrace.

    Do what you do best Apple. Get back to basics of making the best products FOR YOUR CUSTOMERS!!! not some WOKE CANCEL CULTURE CIRCLE JERK!!! Pathetic minds of “Delusion wokeisim”.

    iFart in your general direction…M1…… nuff said.

    Now go away whilst iTaunt you anther time…

    Apple WILL persevere you empty headed SNOWPHAKES! GET TO WORK!!!

    ps. Looking forward to my maxed out new iMac. June 8-11 delivery dates

    Have A Grateful Day – AAPL LONG. WOKE IS BROKE! No One can Be Woke Enough! Woke IS A JOKE. Sheep 😉

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.