Mid-Afternoon Market Update: Dow Dips 900 Points; AC Immune Shares Slide

U.S. stocks traded lower toward the end of trading, after the Federal Reserve raised fed funds rates by 0.75% to a new target range of between 1.5% and 1.75% on Wednesday.

The Dow traded down 2.97% to 29,756.66 while the NASDAQ fell 4.73% to 10,573.75. The S&P also fell, dropping, 3.87% to 3,643.32.

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Leading and Lagging Sectors

Consumer staples shares fell by just 0.9% on Thursday. Meanwhile, top gainers in the sector included RLX Technology Inc. RLX, up 7% and MedAvail Holdings, Inc. MDVL up 7%.

In trading on Thursday, energy shares tumbled by 6.2%.

Top Headline

US initial jobless claims fell by 3,000 to 229,000 in the week ended June 11th, compared to market estimates of 210,000.

Equities Trading UP

Sidus Space, Inc. SIDU shares shot up 75% to $8.19. Sidus Space shares jumped 225% on Wednesday after the company announced it is part of Collins Aerospace team which was awarded NASA's Exploration Extravehicular Activity services contract with a potential value of $3.5 billion.

Shares of Acorda Therapeutics, Inc. ACOR got a boost, shooting 52% to $0.6101 after the company announced Esteve Pharmaceuticals GmbH launched INBRIJA in Germany.

Advent Technologies Holdings, Inc. ADN shares were also up, gaining 272% to $4.32 after the company announced it received notification of euro 782.1 million of funding from the Greek State for the IPCEI Green HiPo project.

Equities Trading DOWN

Arcellx, Inc. ACLX shares tumbled 14% to $15.09. Arcellx priced an upsized underwritten follow-on offering of 7 million at $16 per share from the original 4 million shares.

Shares of AC Immune SA ACIU were down 13% to $2.50 after the company announced crenezumab did not statistically significantly slow or prevent cognitive decline in people with a specific genetic mutation which causes early-onset Alzheimer's disease.

PROG Holdings, Inc. PRG was down, falling 30% to $16.82 after the company cut FY22 adjusted EPS and sales guidance below estimates.

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Commodities

In commodity news, oil traded up 2.3% to $117.93, while gold traded up 1.8% to $1,852.20.

Silver traded up 2.2% to $21.895 on Thursday while copper fell 1.4% to $4.1055.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 declined 2.47%, London’s FTSE 100 dipped 3.14% while Spain’s IBEX 35 Index fell 1.18%. The German DAX declined 3.31%, French CAC 40 fell 2.39% and Italy’s FTSE MIB Index tumbled 3.32%.

Hourly labor costs in the eurozone rose by 3.2% year-over-year in the first quarter. The trade deficit in Spain increased to €6.4 billion in April from € 1.3 billion in the year-ago period, while annual inflation rate in Italy was revised lower to 6.8% in May.

Economics

Housing starts declined 14.4% month-over-month to an annualized 1.549 million units in May, while building permits declined 7% to an annualized rate of 1.695 million.

US initial jobless claims fell by 3,000 to 229,000 in the week ended June 11th, compared to market estimates of 210,000.

The Philadelphia Fed Manufacturing Index fell to -3.3 in June, signalling the first contraction in factory activity since May 2020.

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COVID-19 Update

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 87,759,180 cases with around 1,037,660 deaths. India confirmed a total of at least 43,259,600 cases and 524,800 deaths, while Brazil reported over 31,611,760 COVID-19 cases with 668,690 deaths. In total, there were at least 542,599,590 cases of COVID-19 worldwide with more than 6,336,890 deaths.