Aside from some obvious spots of strength in today’s market (hello, Tesla (NASDAQ:TSLA)), the stock market is taking a rather bearish turn this Monday. Accordingly, many investors may rightly be asking: Why are stocks down today?
As with the price action on any given day, the answer to such a question is usually complex. Investors have hundreds of factors to consider, with the macroeconomic outlook being key to short-term decisions made by traders and money managers. Today, it seems many investors are opting to take profits.
With this in mind, several mega-cap stocks are seeing significant weakness. Among these, Apple (NASDAQ:AAPL), Exxon Mobil (NYSE:XOM), Meta Platforms (NASDAQ:FB) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) faced selling pressure earlier today. However, as of this writing, these stocks appear to be trimming their losses.
So, perhaps today won’t end up being that red of a day after all. That said, let’s dive into why today’s heat map isn’t as positive as many investors may like to see.
Why Are Stocks Down Today?
Among the key reasons investors appear uneasy in today’s start to trading is the fact that a number of economic reports are set to be released this week.
The March jobs report, personal consumption expenditures deflator, and other inflation data set to be released this week may have a big impact on the market moving forward. That’s because this data may inform the Federal Reserve in its rate hiking decisions. Thus, with Jerome Powell already signaling a 50-basis-point hike could be on the table, these data are likely to be priced into bonds in a big way this week.
Today, we are seeing a market truth unfold. When times are uncertain, investors do what they do best — sell.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.