By Liz Moyer

Investing.com – U.S. stocks tumbled on Thursday again due to concerns over inflation, which could force the Federal Reserve into a more aggressive stance on interest rates.

Inflation for businesses rose again in April but at a slower rate than previous months. This was the catalyst. Although this could indicate that the pressure has decreased, it still remains high.

Analysts weigh whether this will have an impact on the next monthly meeting of the Federal Reserve to decide how interest rates should change. There is consensus for a 1.5-point increase. However, there are those who believe that 75 basis points could be possible. 

This selloff of tech stocks has also impacted the overall market. Apple Inc. (NASDAQ:), which suffered a further 3% drop Thursday following a Wednesday 5% decline, lost the title of most valuable company to Aramco. (TAWUL:), the Saudi-oil major. TADAWUL:, Saudi oil major Aramco (TADAWUL:), managed to offset losses to remain slightly green.

Apple and other tech giants such as Alphabet (NASDAQ:), Netflix Inc (NASDAQ:) and Facebook’s Meta Platforms Inc (NASDAQ:) had led the market higher until this recent swoon.

Following the crash in stablecoins, cryptocurrencies have been a major focus. The biggest digital currency is now at $28,000 and below $30,000, which is less than half of its peak value from November last year.

These are the three factors that will impact markets tomorrow.

1. Consumer sentiment

At 10:00 AM ET, ’s consumer sentiment reading for May comes out, expected to be 64, down slightly from the 65.2 recorded in April as households battle rising food and gasoline prices that are forcing them to make compromises in their spending.

2. Earnings are guaranteed if you agree to it

Buy-now, Pay-later Company Affirm Holdings Inc (NASDAQ) is one of fintech’s most talked about companies. However, its shares have fallen 60% since last year’s eagerly awaited initial public offering. After beating the expectations of both top and bottom-line, the stock surged 19% on Thursday night.

3. Robinhood stock

Shares Robinhood Markets Inc (NASDAQ) jumped 25% after a regulatory filing stated that Sam Bankman Fried, CEO of cryptocurrency exchange FTX had acquired a 7.6% share.