Indices deep in the red

Stocks are falling hard this afternoon, as the gains of earlier in the week disappear in a flurry of selling that reflects nerves about central bank tightening and poor earnings.

Stocks reverse course on tightening fears

“Yesterday’s optimism has vanished now that Powell appears to have moved into the 50-basis point rate hike camp. The market had seemed to have adjusted to a faster pace of hikes, but the view is now that, if Powell is happy with 50 basis points, then it gives cover for others to call for even faster tightening. This has cut the foundations from underneath the rally in stocks over recent days, and suggests that the second half of April will be just as tough as the first for most equities.”

Tech stocks spell trouble for the market

“The big tech names are still reeling from Netflix’s earnings, but the pain isn’t over it. While the sector is relatively quiet today, next week’s earnings may spark another cycle of selling. When set against the huge losses suffered by Meta and Netflix, Apple’s 9% decline is minor.  But even Apple can’t hold up the whole market forever, and with stocks dropping again today it looks like there is worse to come.”