Here are the most important news, trends and analysis that investors need to start their trading day:
Traders on the floor of the New York Stock Exchange.
In the previous session, the 30-stock Dow fell more than 600 points, clinching its worst day since January. The S&P 500 lost 2.1%, its biggest one-day drop since February, while the tech-heavy Nasdaq Composite slid 2.6%.
The major indexes have already registered big losses by midweek with the S&P 500 falling 4% through Wednesday’s close. The Dow has fallen 3.4%, while the Nasdaq underperformed with a 5.2% loss as tech shares got hit particularly hard in the face of higher inflation and interest rates.
Workers manufacture steel reinforcement bars that are used in support structures like the Lincoln Tunnel
Stephanie Dhue | CNBC
Data on producer prices in April is poised to be released at 8:30 am ET Thursday. The Producer Prices Index, often overlooked by investors, will come under the spotlight after Wednesday’s report on consumer prices showed inflation running hotter than expected and triggered a big sell-off on Wall Street.
Economists polled by FactSet are expecting a 0.3% increase in April over the previous month. Year over year, PPI is expected to rise 3.8%, according to FactSet.
The Labor Department reported that the prices American consumers pay for goods and services accelerated at their fastest pace since 2008 last month with the Consumer Price Index spiking 4.2% from a year ago.
Artur Widak | NurPhoto | Getty Images
Bitcoin and other digital tokens fell sharply in prices, wiping hundreds of billions of dollars off the entire cryptocurrency market after Tesla CEO Elon Musk tweeted that the electric vehicle maker would suspend car purchases using bitcoin.
Bitcoin dropped more than 10% after Musk‘s surprising reversal on the bitcoin use. The world’s largest cryptocurrency dipped below the $50,000 mark for the first time since Apr. 24, according to CoinDesk data.
Coinbase, which just went public on the promise of crypto-trading becoming mainstream, dropped 5% in premarket trading following Musk’s comments. Along with Tesla, shares of other companies that own sizable bitcoin stakes declined with MicroStrategy off by 6% in the premarket.
Tanker trucks can be seen in an adjacent lot next to the entrance of the Colonial Pipeline tank farm in Charlotte, North Carolina on May 12, 2021.
Logan Cyrus | AFP | Getty Images
Colonial Pipeline restarted operations Wednesday at approximately 5 p.m. ET after a ransomware attack last week forced the entire system offline on Friday evening. The company did warn, however, that its pipeline would not be fully functional immediately.
“Following this restart it will take several days for the product delivery supply chain to return to normal,” Colonial said in a statement. “Some markets served by Colonial Pipeline may experience, or continue to experience, intermittent service interruptions during the start-up period. Colonial will move as much gasoline, diesel, and jet fuel as is safely possible and will continue to do so until markets return to normal,” the company added.
The majority of the 5,500 mile pipeline, which supplies around half of the East Coast’s fuel, had been offline since Friday. The shutdown sparked fears of a gasoline shortage, and pushed the national average for a gallon of gas above $3 for the first time since 2014.
Masayoshi Son, chairman and chief executive officer of SoftBank, reacts during a dialog session with Jack Ma, former chairman of Alibaba, not pictured, at Tokyo Forum 2019 in Tokyo, Japan, on Friday, Dec. 6, 2019.
Kiyoshi Ota | Bloomberg via Getty Images
SoftBank CEO Masayoshi Son told CNBC’s Andrew Ross Sorkin that he expects to see even more exits from companies in the Vision Fund’s portfolio to go public.
“I want to create an ecosystem… where we would have multiple companies going for IPOs,” Masa Son said in the interview, which was recorded Wednesday night. He said 14 of SoftBank’s Vision Fund companies had an IPO or other exit over the last 12 months, up from eight exits the year before.
His comments followed a blowout quarterly report from SoftBank.
SoftBank on Wednesday reported $45.88 billion in net profit for the last quarter, largely thanks to the IPO of one of the crown jewels in its Vision Fund portfolio, the South Korean e-commerce company Coupang.
He also spoke about his regrets with the botched WeWork IPO and investments he missed, such as Airbnb.
Enjoyed this article?
For exclusive stock picks, investment ideas and CNBC global livestream
Sign up for CNBC Pro
Start your free trial now