US stocks opened lower on Friday, led by declines in the technology sector, after Amazon.com reported that First quarterly loss in seven years.
The S&P 500 fell 0.8% shortly after the opening bell. The Dow Jones Industrial Average was down 93 points, or 0.2%, shortly after the opening bell and the Nasdaq Composite was down 1%. The moves are a reversal from Thursday, when technology is involved led gains Investors cheered a solid earnings report from Meta Platforms.
That optimism faded after Amazon announced its loss, an outcome that reflected widespread economic trends related to declining online shopping, rising costs stemming from inflation and supply chain problems, and market tensions over electric car startups. Amazon shares fell 11.6 percent in morning trading. Moves in big tech companies can have significant impacts on major stock indices due to their higher weight compared to other stocks.
Technology stocks have been under pressure this month More interest rate hikes are expected From the Federal Reserve luring investors towards bonds and adds the closure in Shanghai Disruption in the global supply chain. The Nasdaq Composite is down 9.5% this month to Thursday’s close, on track for its biggest one-month percentage drop since March 2020.
Apple on Thursday warned of a resurgence of Covid-19 in China Threatens to disrupt sales up to $8 billion in the current quarter. Shares fell 0.8%.
“The reality is that after weeks of this shutdown, we are going back to supply chain disruptions that could affect inflation and that could put central banks in difficult situations,” said Este Dweck, chief investment officer at FlowBank. “We have seen the beginning of improvements in supply chains but that will likely be reversed if these lockdowns in China continue for much longer.”
Tesla shares rose 2.2% after the CEO
It was revealed recently Sold $4 billion worth of stock in the electric car maker to fund its Twitter acquisition, but said there are no plans for further sales.
The Fed’s preferred measure of inflation, the PCE index measure of core inflation, which excludes volatile food and energy costs, rose 5.2% in March from a year earlier. we Consumer spending rose in March 1.1% from the previous month.
In the bond markets, the yield on the benchmark 10-year Treasury rose to 2.908% on Friday from 2.862% on Thursday. Yields rise when prices fall.
The WSJ Dollar Index, which measures the greenback against a basket of 16 other baskets, was down 0.4%. The US currency has strengthened against other currencies this year on the anticipation of an increase in the Federal Reserve, which is expected to happen faster and more strongly than the Eurozone and Japan.
Brent crude, the international oil standard, rose 1.3 percent to $108.71 a barrel. Moscow’s cutting off of gas supplies to some countries has alarmed traders of further unrest as European countries try to shy away from Russian energy.
Offshore, the Stoxx Europe 600 continental index was up 0.8%.
In Asia, Alibaba and other Chinese technology stocks jumped by multiples as investors hope the Chinese government will do more to support the sector and the broader economy. surgery Chinese stocks helped offset some of their recent losseswhile the yuan also regained some of its gains against the dollar after a sharp sell-off in recent sessions.
Hong Kong’s Hang Seng is up 4%, while the tech Hang Seng is up 10%, with technology stocks like Alibaba, Tencent, JD.com and Meituan up more than 10%.
In China, the CSI 300 and Shanghai Composite are up about 2.4%. The offshore yuan strengthened against the dollar, rising to 6.6188 per dollar, after settling at 6.6590 on Thursday.
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