Written by Brenda Nakalema

Dow Futures Rise, Bitcoin Surges, Twitter Stock Drops- Plus Other News From the Stock Market Today

Stocks climbed on Friday as the momentum sparked by the week’s selloff eased, although the fears behind the recent declines, …

Creative forex chart background. Finance and trade concept. 3D Rendering

Stocks climbed on Friday as the momentum sparked by the week’s selloff eased, although the fears behind the recent declines, including inflation and recession risk, remain a present fear.

Futures for Dow Jones Industrial Average rose 230 points, or 0.7%, after the index lost roughly 103 points on Thursday, closing at 31,730. S&P 500 futures indicated a start 1% into green with the technology-heavy Nasdaq poised to climb 1.7% higher.

The pan-European Stoxx 600 climbed 1.4% in overseas markets, and Tokyo’s Nikkei 225 gained 2.6%. A selloff in stocks increased in the past week, with the Dow hitting its worst six-day stretch in more than two years as of Thursday. Although the declines seem to have decelerated, the pressures that have stocks lower remain.

“We’ve seen more wild swings in equity markets over the last 24 hours, largely driven by a concern over slowing growth and sticky inflation, raising fears of looming stagflation and possible recession,” said Michael Hewson, an analyst at broker CMC Markets.

The Federal Reserve continues to be a pain point for investors as they fear that it will not be able to avoid causing a recession as it further tightens monetary conditions this year. The Fed has already made aggressive moves to raise interest rates in 2022 and is expected to continue down this trail as it battles inflation at a four-year high. The risk is that higher borrowing costs might dent economic growth to the point that the U.S economy slips into recession.

Inflation data this week- in the form of consumer price index (CPI) and producer price index (PPI), both shot above Wall Street’s expectations, further creating more fear of more aggressive central bank control. Despite all this, there might be some respite for markets in the future as Fed Chair Jerome Powell indicated that the central bank was on course for 50- basis point rate hikes over the next few months rather than a mega-sized 75 basis-point hike.

“While we continue to see positives for the market, investor sentiment isn’t likely to turn until we get greater clarity on the 3Rs- rates, recession, and risk,” said Mark Haefele, Chief Investment Officer at UBS Global Wealth Management.

Cryptocurrencies also rallied, with Bitcoin and other digital assets surging after the largest crypto temporarily dropped to its lowest level since late 2020. The price of Bitcoin climbed 10% over the past 24 hours and above the sacred $30,000.

Here are stocks on the move this Friday

Twitter (ticker: TWTR) dropped around 15% in the U.S premarket trading after Tesla (ticker: TSLA) CEO Elon Musk, who had previously agreed to buy the social media giant, then commented that the deal was “temporarily on hold” pending a calculation related to the number of fake accounts on Twitter. Tesla shares climbed 5%.

Robinhood Markets (ticker: HOOD) soared by 22% after filing revealed that Sam Bankman-Fried, co-founder of crypto exchange FTX and an influential voice in digital investments, had purchased a large stake in retail stock brokerage.

Figs (ticker: FIGS) dropped roughly 25% after the marker of fashionable medical scrubs cut its revenue forecast for 2022 to a range of $150 million to $530 million, down from $550 million to $560 million, after citing supply chain challenges and inflation.

Affirm Holdings (ticker: AFRM) climbed 30% after the company raised its revenue forecast for fiscal 2022 to a range of $1.33 billion to $1.34 billion, up from previous estimates of $1.31 billion.