Winter is coming...

On Friday morning the Consumer Price Index report came in hotter than expected at 8.6% for the month of May. One of the largest increases in decades spooked investors sending the stock market in a downward spiral.

Stocks were quick to react to the CPI report dropping before the bell. Tech stocks lead the way, and closed near lows.

At Fridays close:

• Nasdaq: -3.52%

• Dow: -2.73%

• S&P 500: -2.91%

DocuSign signs off from all-time highs

Over the last 12 months, DocuSign ($DOCU) has lost over 70% of their value. Last year, the stock was trading above the $300 level, but after the closing bell this Friday, the stock is trading at a staggering $65.93.

DocuSign dropped over 20% on Friday after they released their earnings for the first quarter of 2022.

Here are some highlights from their earnings report:

• EPS: $.38 adj. vs .$.46 estimated

• Revenue: Increased by 25% year-to-date

While EPS took a hit, the company brought home more revenue than expected. However, investors were more worrsome about DocuSign's future outlook. They reported a net loss of $27.4 million this quarter, compared to $8.3 million a year before. While DocuSign is not reducing their headcount, they are preparing for the storm early by slowing down hiring into the end of the year.

Rates on the Rise

The bond market also saw volatility as the 10 year treasury bond rates jumped to new highs. The 10 Year closed last week at 3.16% up over 3% on the session. The bond market usually doesn't get the publicity like equities, but they are a key metric to look at. Credit markets are the driving force behind economic growth and sentiment, so rates can give us a reading on the temperature of the market.

Michael Burry, made famous from the movie "The Big Short" for shorting the housing market back in 2008, commented on the credit situation on Saturday.

No one will know for sure where the markets/economy will go, but Burry sees colder days on the horizon.

Ethereum market cap falls below $150 billion

Over the weekend cryptocurrencies followed suit with the stock market breaking to lows lead by Ethereum. Ethereum hit a fresh low falling below $1200. It was trading less than 2 weeks ago around $2000.

Total Value locked on Ethereum and other protocols have also hit fresh lows falling below $100 billion for the first time in over a year.

Crypto and the stock market still remain highly correlated so we will have to keep an eye on both to get a good feel of sentiment.

Other Cryptocurrencies:

• Bitcoin: $23,600

• BNB: $218

• Solana: $26.60Check out CoinMarketCap for the latest prices

It's been a long weekend for crypto investors, especially Celsius a crypto lending platform that halt all withdrawals.

Many members of the crypto community went to twitter in the mist of the announcement from Celsius saying, "Not your keys, not your crypto". Referring to using platforms that require users to give up their assets, and not technically "own" what they deposit into it.

Be sure to keep an eye on the the market as volatility typically opens the door for opportunity.