Dow drops more than 500 points as S&P 500 and Nasdaq head for worst month since March 2020 2022-04-29 13:09:00

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US stocks fell sharply on Friday afternoon, as investors weighed on new inflation data while technology-related stocks struggled after disappointing results from Amazon.com Inc. The warning about rising costs from Apple Inc.

How do stock indices work?
  • Dow Jones Industrial Average
    DJIA,
    -1.85%

    It fell nearly 515 points, or 1.5%, to about 33,402 points.

  • S&P 500 . Index
    SPX,
    -2.71%

    It fell 95 points, or 2.2%, to 4,192 points.

  • Nasdaq Composite
    COMP,
    -3.20%

    It fell nearly 334 points, or 2.6%, to about 12,538.

employment ThursdayThe Dow Jones rose 614.46 points, or 1.9%, the S&P 500 rose 2.5% and the Nasdaq Composite jumped 3.1%. The Dow and S&P 500 indexes posted their best daily percentage rise since March 9, while the Nasdaq had its best day since March 16, according to market data from Dow Jones.

Over the course of the week, the Dow is on track to fall 1.2%, the S&P 500 is headed for a 1.9% drop and the tech-laden Nasdaq is on track to fall 2.4%, according to FactSet data, at the latest check.

What is driving the markets?

US stocks fell sharply on Friday, with technology stocks weighing on indexes.

“Tech is going through a tough day,” Michael Reynolds, vice president of investment strategy at Glen Mead, said in a phone interview Friday, as shares of e-commerce giant Amazon.com plunged, sending stock indexes lower.

amazon stock AMZN It was down more than 13% early Friday afternoon, after reporting Her first loss in seven years. The company’s slide made the S&P 500’s biggest loser in afternoon trading, according to FactSet data, the last pick.

All 11 sectors of the S&P 500 were declining, with consumer appreciation
SP500.25,
-5.32%
And
Real estate
500.6010,
-3.02%

and information technology
500.45 SP,
-2.66%

FactSet data shows the biggest losses. Apple Inc. shares.
AAPL,
-2.36%

It fell 2.2% after the tech giant beat profits and posted record revenue, but it warned of billions in additional costs from supply chain problems.

Friday marks the last trading day of April, which is heading towards being the worst month for the S&P 500 – down 5.3% as of Thursday – since March 2020. The Nasdaq was already down 9.4% as of Thursday and is also facing its worst monthly return since Then that epidemic is low, according to FactSet.

The month consumed concerns on several fronts, including economic growth in China as COVID-19 cases led to many city closures as well as supply chain disruptions caused by the Russian war in Ukraine.

“There is a lot for the market to grapple with right now,” Reynolds said.

CBOE Volatility Index
VIX,
+ 5.04%

It was trading around 31 pm on Friday, well above the 200-day moving average of around 21.5, according to FactSet data.

“The petrified chase we’ve seen this week as stock markets oscillate from ‘We’re all doomed, get me out,’ to ‘I don’t want to lose the absolute bottom of the stock market, get me in’ is perhaps,” Jeffrey Haley, chief market analyst at Oanda, told clients in a note. It is indicative of the state of confusion that is out there.

In the wake of Thursday Weak economic growth data in the US for the first quarterThe Fed’s preferred measure of inflation – the core PCE price index for March – rose 0.3% with the headline index rising 0.9%.

“It is really good to see the slowdown in core PCE inflation year-over-year. Inflation may have peaked in March, although the evidence remains a bit murky,” said Bill Adams, chief economist at Comerica Bank, in a note. .

be seen: US inflation rises to 6.6% based on PCE index – but there is a positive side

In addition to inflation concerns, Labor cost index in the United States It accelerated in the first quarter to 1.4%, from 1.0% in the final three months of 2021, according to data released by the Labor Department on Friday.

Meanwhile, the University of Michigan’s final reading of US consumer confidence in April came decreased to 65.2 From an initial reading of 65.7, it still represented the first rise so far this year.

Friday’s economic data comes ahead of next week’s two-day Federal Reserve meeting, which many expect will conclude with a 50 basis point increase in interest rates.

be seen: Fed rate hike seen half a percentage point next week baked in a pie

Also, billionaire investor Warren Buffett and his right-hand man Charlie Munger will be in the spotlight on Saturday as investors return to Omaha for Berkshire Hathaway Inc.
BRK.A,
-1.79%

BRKB,
-1.70%

annual meeting. The event, dubbed “Woodstock for the Capitalists”, has been held for nearly the past two years due to COVID-19.

do not miss: 6 things to see as Warren Buffett hosts Woodstock for Capitalists on Saturday

What companies are focused on?
  • Intel Corp.
    INTC,
    -6.37%

    Shares fell 5.9 percent after the chip maker Hold onto your full year forecast Amid expected weakness this quarter.

  • Roku Inc.
    ROKU,
    + 2.53%

    The digital media maker’s stock rose 4.9 percent Reported first-quarter fiscal revenue exceeded expectations And profits are largely in line with expectations.

  • Robinhood Markets Inc. Involved
    Hood,
    -2.53%

    It fell 0.5% after the brokerage Missed the first quarter forecast They said fewer people are trading on its online platform.

  • Tesla Corporation Involved
    TSLA,
    + 0.44%

    It rose 2.7%. CEO Elon Musk tweeted late Thursday that he had no plans to sell more shares, after a Securities and Exchange Commission filing showed he sold Nearly $4 billion in stock From the electric car maker amid its $44 billion deal on Twitter.

  • Colgate-Palmolive Co
    CL,
    -4.64%

    Shares fell 4.8% after the consumer goods maker said a challenging cost environment continued to affect the profit.

  • Chevron Corporation. CVX Shares fell 2.5 percent after revenues exceeded expectations due to higher oil and gas prices, but there was a rise in profits Below expectations. Exxon Mobil Corporation. XOM Lost Profit Estimates For the first quarter, it booked $3.4 billion in fees related to its planned exit from Russia’s Sakhalin 1 project. Exxon shares fell 1.1 percent.

  • Honeywell International Corporation HON The company’s stock rose 3.4 percent after earnings and revenue beat expectations and the aerospace and construction products maker raised her gaze.

  • AbbVie Inc. ABBV Shares fell 8.1% after the drug company’s revenue came in less than Wall Street expectations. Bristol-Myers Squibb Company. BMY Tell investors to expect less revenue from the cancer drug Revlimid and Lower adjusted earnings per share For the full year in 2022. Shares are down 2.6%.

How are the other assets?
  • The yield on 10-year Treasury bonds
    TMUBMUSD10Y,
    2.881%

    It rose about 4 basis points to 2.9% following the latest inflation data. Yield and debt prices move opposite each other.

  • Oil futures rose, with the US index
    CL.1,
    -0.66%

    It was up 0.4% at around $105.80 a barrel. Gold for June delivery
    GCM22,
    + 1.08%

    GC00,
    + 1.08%

    It rose 1.1% to $1,912.20 an ounce.

  • Bitcoin
    BTCUSD,
    -3.52%

    It was down 3.6% at $38.507.

  • Stokes Europe 600
    xxxp,
    + 0.74%

    It closed up 0.7% on Friday, while the FTSE 100 closed in London
    UKX,
    + 0.47%

    offer 0.5%.

  • Shanghai boat
    SHCOMP,
    +2.41%

    It closed up 2.4% on Friday, while the Hang Seng closed
    HSI,
    + 4.01%

    In Hong Kong it jumped 4%. Japan’s Nikkei 225 Index
    Nick,
    + 1.75%

    It was closed for a national holiday.

—Barbara Colmayer contributed to this report.

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