WS #8932
The dominant market narrative is a broad risk-off move driven by rising oil prices and hawkish Fed commentary. Dallas Fed President Logan stated she is 'increasingly concerned higher interest rates could be necessary later this year,' adding that monetary policy is not restraining the economy and inflation is taking too long to return to 2%. This hawkish surprise sent the Dow down 619 points, the S&P 500 snapping a 9-day winning streak, and oil climbing to its highest level in over a week. Bitcoin tumbled toward $65K. The oil price move is compounded by Ukrainian drone strikes on a St. Petersburg oil terminal and an industry warning that inventories are at 'critically low' thresholds. Separately, a strong earnings season continues: CrowdStrike (CRWD) beat and raised guidance, announced a 4:1 stock split, and saw record net new ARR of $256M, though the stock initially sold off -9% on valuation concerns. Veeva Systems (VEEV) and Five Below (FIVE) also delivered beats and raised guidance. Micron (MU) CEO Sanjay Mehrotra sold $38.4M in stock today, bringing his 33-day total to over $95M, a potential bearish signal for the semiconductor sector. The US Senate voted to open debate on a $70B immigration crackdown bill, and the US and Five Eyes issued an unprecedented joint warning about Chinese spy recruitment on LinkedIn.
Key developments
- Fed's Logan says rate hikes may be necessary later this year, monetary policy not restraining economy
- Oil spikes to highest in over a week after Ukrainian drone strikes on St. Petersburg oil terminal; industry warns of critically low inventories
- CrowdStrike Q1 beat-and-raise, record net new ARR $256M, announces 4:1 stock split; stock initially sells off -9% on valuation
- Micron CEO sells $38.4M in stock today, over $95M in 33 days
- Veeva Systems Q1 beat and raised FY guidance; Five Below Q1 beat with 22.7% comp sales growth
- Dow ends 619 points lower, S&P 500 snaps 9-day winning streak as oil and yields rise; Bitcoin tumbles toward $65K