US OPEN: Wall Street sinks as inflation woes worsens

• US indices launched today's cash trading lower
• CPI reading well above expectations
• Twitter (TWTR.US) sues Elon Musk 

Major Wall Street indices launched today’s session sharply lower - Dow Jones fell 0.98%, while S&P500 and Nasdaq dropped 1.27% and 1.78% respectively after fresh CPI data showed that inflation jumped to 9.1%, which is the highest level since November 1981. Investors fear that such a rapid price growth may push FED to take more aggressive actions this month.

US30 again bounced off major resistance at 31320 pts, which coincides with 23.6% Fibonacci retracement of the last downward wave. As long as price sits below the aforementioned level, support at 29615 pts is at risk. On the other hand, should buyers regain control and break above aforementioned resistance, then another upward impulse towards next resistance at 32410 pts may be launched. Source: xStation5

Company news:

Twitter (TWTR.US) stock rose over 2% in premarket  after the social media giant sued Elon Musk for violating his $44 billion deal to buy the company and will try to force him to adhere to the terms of their deal. 

Twitter (TWTR.US) stock has been under pressure recently and if current sentiment prevails, downward move may accelerate towards February lows at $31.45. Nearest major resistance to watch can be found at $41.25 and coincides with 23.6% Fibonacci retracement of the last downward wave. Source: xStation5

Snowflake (SNOW.US) stock rose 1.5% in premarket after Baird lifted the cloud computing-based data warehousing company rating to ‘outperform’, saying it could show strong growth even in a recession.

Unity Software (U.US) stock plunged over 8.0% before the opening bell after the provider of interactive software technology slashed its full year financial outlook and announced an all-stock merger agreement with ironSource, which is worth approximately $4.4 billion.  

Gap (GPS.US) shares fell over 1.0% in premarket as Deutsche Bank downgraded the apparel retailer’s to “hold” from “buy” as it is concerned about sales recovery and elevated level of promotions.