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(Bloomberg) — Stock markets fell as big tech stocks sold off and a pile of options expiring on Friday threatened to cause sudden price swings.
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Wall Street traders are bracing for a quarterly episode eerily known as triple witching, when derivatives contracts related to stocks, index options and futures are scheduled to expire, forcing traders to close existing positions en masse. be forced to roll over or start a new position. About $5.3 trillion will expire this time, according to Rocky Fishman, founder of derivatives analysis firm Asim500.
“It’s a very difficult day to predict the direction of the market,” said Matt Maley of Miller Tabak. “On important expiry dates like this, ‘inside’ is too biased by the expiration date to tell us anything. Therefore, it will be important for investors not to take advantage of today’s action when trying to decipher what will happen in the market next week and beyond. ”
The options episode comes at a critical juncture for market posture heading into next week’s Federal Reserve policy meeting. The recent acceleration in inflation is unlikely to change policymakers’ expectations for three rate cuts this year and four in 2025, according to a Bloomberg News survey of economists.
The S&P 500 index fell to around 5,120, led by losses in technology, the most influential group. The Nasdaq 100 fell about 1%. Nvidia Corp. ended its nine-week streak of gains. Adobe shares fell 13% due to weaker sales outlook. The yield on the 10-year US Treasury note rose 2 basis points to 4.31%. The dollar fluctuated.
Company highlights:
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Adobe gave a weak revenue outlook for the current quarter, raising concerns that new AI startups pose a competitive threat.
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Nippon Steel has said it is determined to complete its $14.1 billion acquisition of United Steel Corp., even after President Joe Biden said the company should remain in U.S. hands.
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United Airlines Holdings Inc. is close to securing at least 30 Airbus A321neo aircraft from aircraft leasing companies to replace Boeing Co.’s 737 Max 10 order, which is at least five years behind schedule, people said. That’s what it means.
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Qatar Airways is in early talks with Boeing Co. and Airbus SE to order up to 150 wide-body jets and replace its aging fleet of long-haul aircraft, according to people familiar with the matter.
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Madrigal Pharmaceuticals’ drug Rezdifla has won approval in the United States for the first time to treat a potentially fatal liver disease that affects millions of people around the world, leading some major rivals to I succeeded in areas where I had failed.
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The 8 billion euro ($8.7 billion) deal to sell Vodafone Group’s Italian operations to Swisscom AG marks the completion of CEO Margherita della Valle’s European transformation plan for the telco and strengthens its competitive position. It promises to revolutionize the competitive Italian market.
The main movements in the market are:
stock
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As of 9:49 a.m. New York time, the S&P 500 was down 0.6%.
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Nasdaq 100 fell 0.9%
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The Dow Jones Industrial Average fell 0.3%.
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Stoxx Europe 600 has little change
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MSCI World Index falls 0.5%
currency
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Bloomberg Dollar Spot Index rose 0.1%
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The euro was almost unchanged at $1.0885.
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The British pound was almost unchanged at $1.2746.
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The Japanese yen fell 0.4% to 148.90 yen to the dollar.
cryptocurrency
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Bitcoin fell 3.3% to $68,367.35.
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Ether fell 3.1% to $3,720.95.
bond
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The 10-year Treasury yield rose 2 basis points to 4.31%.
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Germany’s 10-year bond yield rose 2 basis points to 2.44%.
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The UK 10-year bond yield rose 3 basis points to 4.12%.
merchandise
This article was produced in partnership with Bloomberg Automation.
–With assistance from Lu Wang.
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©2024 Bloomberg LP
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