Market panic risks accelerated after stocks extended their losses on Wednesday. The Dow Jones (DJI) lost over 0.7%, the S&P 500 (SPY) dropped by 0.8% and the Nasdaq lost a frightening 1.2%. The widely held stocks need to hold their ground today. A rebound would suggest the stock declines are a result of light profit-taking.
Tomorrow, the Bureau of Labour Statistics will post U.S. unemployment figures. The latest job openings report indicated no change. Still, the job openings fell to their lowest level since March 2021.
Exxon (XOM) is the first stock to watch. Oil prices gained by more than 3% yesterday. Markets are worried about supply disruptions while OPEC is united in its commitment to its shared objectives of unity and cohesion.
Meme-era hyped stock AMC Entertainment (AMC) lost 8.67% on Jan. 3. Its all-time low is a reminder that meme, pandemic, and euphoria trades are no more. GameStop (GME), despite a short float of 23.53%, is nearly 41% above its 52-week low.
In the weeks ahead, the U.S. government having over $30 trillion debt will become the market’s latest worry. Markets will eventually find out the hard way that U.S. debt does not attract an infinite number of buyers. Should the Federal Reserve step in as the buyer-of-last-resort, it could incite market panic.
The 30-year Treasury Bond ETF (TLT) is the third stock to watch closely today.
