Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) are trading lower on Thursday as cracks begin to appear in the U.S.-Iran ceasefire.
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Forget margin or options. Here's how the pros trade QQQEarlier this week, President Trump demanded an immediate reopening of the Strait of Hormuz as part of the ceasefire. However, the passageway has remained largely closed, with only six vessels crossing through over the past 24 hours, according to data from Kpler. In addition, Iran accused Israel of violating the ceasefire following missile strikes in Beirut.
Weak GDP and Sticky Inflation Weigh on the Stock Market
Elsewhere, weak economic data is also placing pressure on stocks. The Bureau of Economic Analysis (BEA) announced this morning that gross domestic product (GDP) grew at an annualized rate of 0.5% in the fourth quarter, down from 4.4% in the third quarter and 3.8% in the second quarter.
Furthermore, core PCE, the Fed’s preferred gauge of inflation, increased by 3% year-over-year in February. That remains above the Fed’s target of 2% and is at risk of rising even further from higher oil and gas prices.