Day Traders Diary

4/21/22

The major averages had a sharp reversal, as a jump in Treasury yields offset the optimism coming from another batch of solid corporate earnings. The Dow Jones Industrial Average finished down 368 points, or 1.05%, to close at 34,792. The S&P 500 dropped 65 points or 1.48% to 4,393 while the Nasdaq Composite slid 278 points or 2.07% to 13,174.

The major averages were all up sharply earlier in the day, as traders cheered strong quarterly earnings. The Dow was up as much as 331 points, or 0.9%; the S&P 500 and Nasdaq each jumped more than 1% at their highs of the day.

Treasury yields were up sharply on the day, with the benchmark 10-year rate trading above 2.9% for much of the session — near its highest level since late 2018.

Stocks fell Thursday in a sharp reversal, as a jump in Treasury yields offset the optimism coming from another batch of solid corporate earnings.

The Dow Jones Industrial Average traded lower by 368.03 points, or 1.05%, to close at 34,792.76. The S&P 500 dropped 1.48% to 4,393.66, and the Nasdaq Composite slid 2.07% to 13,174.65.

The major averages were all up sharply earlier in the day, as traders cheered strong quarterly earnings. The Dow was up as much as 331 points, or 0.9%; the S&P 500 and Nasdaq each jumped more than 1% at their highs of the day.

Treasury yields were up sharply on the day, with the benchmark 10-year rate trading above 2.9% for much of the session — near its highest level since late 2018.

The 10-year started the year near 1.5% and has shot up as the Federal Reserve tightens monetary policy to get a hold of soaring prices in the U.S.

Thursday's move in rates came as Fed Chairman Jerome Powell signaled that bigger rate hikes may be coming next month.

Speaking at the International Monetary Fund Debate on the Global Economy on Thursday afternoon, Powell said it is "appropriate in my view to be moving a little more quickly" to raise interest rates. "I also think there is something to be said for front-end loading any accommodation one thinks is appropriate. ... I would say 50 basis points will be on the table for the May meeting."

However, many high profile investors are skeptical that the Fed can get inflation under control without causing economic damage.

Thursday's sell-off was broad, but some strong individual moves after earnings helped keep the major indexes from even sharper declines.

Energy and materials stocks were a weakness for the market on Thursday, with Mosaic falling 9.4% and Chevron losing 4.6%. Clean energy stocks also struggled, with the Invesco Solar ETF sliding nearly 7%.

Notable declines in the tech sectors came from Nvidia, falling about 6%, and Netflix and Alphabet, losing 3.5% and 2.5%, respectively. Elsewhere on Wall Street, Warner Bros. Discovery retreated 6.9% after news of the company shutting down CNN+.