Wall Street drops as investors dump Amazon after report 2022-04-29 13:21:00

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 4, 2022. REUTERS/Brendan McDermid/File Photo

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  • Amazon stumbles after results and shortening expectations
  • Apple retracts after reporting supply problems
  • Monthly inflation has risen the most since 2005
  • Standard & Poor’s 500 -2.40%, Nasdaq -2.78%, Dow Jones -1.65%

(Reuters) – Wall Street tumbled on Friday at the end of a volatile week, with Amazon slumping after a bleak quarterly report, and with the biggest monthly inflation rise since 2005 already raising investors’ concerns about higher interest rates.

Amazon.com Inc (AMZN.O)It plunged 14%, on track for its biggest one-day drop since 2006 and left widely held shares near two-year lows. Late Thursday, the e-commerce giant delivered a disappointing quarter and forecast, mired in rising costs to operate its warehouses and deliver packages. Read more

Apple company (AAPL.O)Shares of the world’s most valuable company fell 2.2 percent after its bleak forecast outweighed record quarterly profits and sales. Read more

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All 11 S&P 500 indices declined, led by consumer discretion lower (.SPLRCD)down 4.4%, followed by a 2.92% drop in the real estate sector (.SPLRCR).

Pessimistic results and concerns about aggressive monetary tightening by the Federal Reserve have hit the tech giant and growth stocks this month.

“Market participants are initially nervous, so there is a quick push when it comes to these names when there is any uncertainty,” said Keith Buchanan, senior portfolio manager at Global Investments in Atlanta. “When the assumptions about the growth of these companies don’t materialize, there is certainly a ‘shoot first and ask questions later’ mentality.

Nasdaq (nineteenth) It lost about 12% in April, its worst monthly performance since the global financial crisis in 2008.

Year-to-date, the S&P 500 has lost 12%, marking the index’s worst start in four months since 1942.

Adding to the concerns on Wall Street, data showed that the personal consumption expenditures index – the Fed’s favorite inflation gauge – rose 0.9% in March after rising 0.5% in February. Read more

The Federal Reserve is due to meet next week, as traders are betting on a 50 basis point rate hike to combat rising inflation.

Signs of aggressive monetary policy tightening, the Ukraine war and China’s coronavirus lockdown have raised fears of an economic slowdown. Thursday’s data showed that the US economy unexpectedly contracted in the first quarter. Read more

In afternoon trading, the S&P 500 index fell 2.40% to 4,184.66 points.

The Nasdaq fell 2.78% to 12514.30 points, while the Dow Jones Industrial Average fell 1.65% to 33,356.43 points.

S&P 500 Busiest Deals

Exxon Mobil Corporation (XOM.N) It fell 1% after $3.4 billion was written off due to its exit from Russia. Chevron Corporation (CVX.N) It fell 2.4% after its first-quarter earnings tumbled. Read more

The first-quarter earnings season has generally been better than expected thus far. Nearly half of the S&P 500 companies have reported as of Thursday, and 81% of them have exceeded Wall Street expectations. Typically, only 66% beat estimates, according to Refinitiv data.

Low issues outnumbered advanced issues on the New York Stock Exchange by 3.16 to 1; On the Nasdaq, the ratio was 2.25 to 1 in favor of declining stocks.

The S&P 500 hit 2 new highs in 52 weeks and 19 new lows; The Nasdaq recorded 11 new highs and 213 new lows.

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Additional reporting by Bansari Mayor Kamdar and Devik Jain in Bengaluru and Noel Randywich in Oakland, California. Editing by Arun Koyyur, Aditya Soni and David Gregorio

Our criteria: Thomson Reuters Trust Principles.

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