Here are the top news, trends, and analysis that investors need to get their trading day started:
1. The futures fall with the resale of the tech sell-off
Trader on the New York Stock Exchange
US stock futures fell early Wednesday, again led by tech stocks. Dow Jones Industrial Average futures fell 120 points while S&P 500 futures traded 0.4% lower. The tech-heavy Nasdaq 100 futures lost 0.7%.
Big tech stocks like Alphabet, Microsoft, Netflix, Facebook and Apple traded in the red, as did stocks in chipmakers Nvidia and AMD.
The tech sector saw a big reversal during the day’s previous session, with the Nasdaq Composite taking more than 2% down and ending the day flat. However, the blue-chip Dow lost more than 450 points to suffer its worst day since February.
2. Inflation accelerates in April
Inflation accelerated last month, at its fastest level since 2008, with the consumer price index up 4.2% yoy, compared with the Dow Jones estimate for a 3.6% increase. The monthly profit was 0.8% versus the expected 0.2%.
Excluding volatile food and energy prices, the core CPI rose 3% over the same period in 2020 and 0.9% monthly. The respective estimates were 2.3% and 0.3%.
3. The gas shortage could worsen due to a disruption in the colonial pipeline
A number of vehicles head towards gas pumps at Costco as Eric Howard directs traffic after a cyberattack crippled the country’s largest fuel pipeline operated by Colonial Pipeline on May 11, 2021 in Norfolk, Virginia.
Jay Paul | Reuters
Gasoline prices could continue to rise if the Colonial Pipeline is not back in service by the weekend and there could be major localized fuel shortages in the Southeast and Central Atlantic regions.
Colonial Pipeline, which stopped broadcasting on Friday after a ransomware attack, expects a significant number of operations to be recoverable by the end of the week. However, it is still unclear how many of the operations will be operational. US Energy Secretary Jennifer Granholm said federal agencies are working around the clock to get the pipeline back to normal.
The attack, carried out by a cyber crime criminal group called DarkSide, brought 5,500 miles of pipeline to a standstill. The artery supplies half of the gasoline to the east coast and runs from Texas to New Jersey.
Gas stations that couldn’t get enough fuel were already closed in some states, and prices rose overnight by as much as 10 cents or more per gallon in some areas.
4. Amazon wins appeal against US $ 300 million EU tax bill
The Amazon logo is displayed on a smartphone.
Igor Golovniov | SOPA pictures | LightRocket | Getty Images
Amazon won its appeal on Wednesday against the European Commission, which ordered the US tech giant to repay € 250 million in taxes to Luxembourg.
The EU court said the Commission had failed to prove that Amazon granted an illegal tax break from Luxembourg – where the US company has its European subsidiary.
The Brussels-based commission announced in 2017 that Luxembourg had granted Amazon inappropriate tax breaks. The commission said at the time that Amazon would be allowed to pay four times less tax than other local companies that are subject to the same national rules.
5.Tesla’s China Sales Fall 27% in April
A Tesla charging station in a hotel car park.
Zhang Peng | LightRocket | Getty Images
Tesla sold 25,845 China-made vehicles last month, down 27% from 35,478 in March, according to the China Passenger Car Association. According to the association, Tesla’s decline in sales was due to a decrease of 12% in April compared to the previous month for cars with new energy in China. The category includes all-electric and hybrid cars. Tesla’s shares fell around 1% in premarket trading on Wednesday.
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