Live Nasdaq Composite: Fed Warning Takes Wind Out of Market Sails
Key Points
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The markets are under pressure this morning after Fed Chairman Jerome Powell made worrying comments about long-term interest rates.
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All three of the major stock market averages are lower.
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Mixed Markets
JPMorgan CEO Jamie Dimon told Bloomberg, “If there’s a recession, I don’t know how big it will be or how long it will last. Hopefully we’ll avoid it, but I wouldn’t take it off the table at this point.”
The markets have erased most of their earlier losses from this morning, with the Dow Jones Industrial Average and S&P 500 now positive while the Nasdaq Composite is seeing a slight decline.
Economy Not Out of the Woods: Jamie Dimon
JPMorgan Chase CEO Jamie Dimon has warned that the economy is not out of the woods yet and could still fall into a recession. Dimon pointed to uncertainty on the tariff front, while the bank’s chief U.S. economist has lowered the likelihood of a recession rearing its head to under 50%.
Producer Prices Fall
While Walmart may be passing along tariff costs to customers, not all companies are doing so. In April, producer prices declined by 0.5%, the steepest drop in half a decade, suggesting that U.S. producers are shielding customers from the higher costs. The results far exceeded estimates from Bloomberg economists, who had predicted a 0.2% increase in producer prices.
This article will be updated throughout the day, so check back often for more daily updates.
The markets are cautious out of the gate this morning, with all three of the major stock market averages trading lower. Stocks are weighing worrying comments from Fed Chairman Jerome Powell, who spoke at an economic event today. Powell warned that long-term interest rates are expected to remain elevated while monetary policy remains fluid, stating, “We may be entering a period of more frequent, and potentially more persistent, supply shocks — a difficult challenge for the economy and for central banks.”
Today’s declines come after a strong run for the S&P 500, which has advanced 18% over the past 25 sessions, erasing its deficit for the year and placing the broader market index into positive territory. The Nasdaq Composite has advanced 6% over the past five trading sessions. Apple (Nasdaq: AAPL | AAPL Price Prediction) is paying its quarterly cash dividend of $0.26 per share today.
Here’s a look at the performance as of morning trading:
Dow Jones Industrial Average: Down 155.55 (-0.41%)
Nasdaq Composite: Down 112.11 (-0.56%)
S&P 500: Down 17.98 (-0.31%)
Market Movers
An executive at discount retailer Walmart (NYSE: WMT) revealed that the company will pass along the tariff impact to consumer in the form of higher prices. Consumers could begin to see higher prices as soon as this month. The stock is off 4.0% today.
China’s e-commerce giant Alibaba (NYSE: BABA) reported disappointing fiscal Q4 revenue results today, sending the stock reeling by 6.5%.
Networking giant Cisco (Nasdaq: CSCO) is down 4.2%.
AI cloud company CoreWeave (Nasdaq: CRWV) stock is also under pressure, falling 4.4% despite reporting strong Q1 revenue and robust demand for its platform. CoreWeave also secured tech giant Google as a client. The company announced a massive capex spending plan for Q2 that appears to have spooked investors.
Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
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