How do stock indices perform?
The Dow Jones Industrial Average DJIA, -2.03% fell almost 515 points, or 1.5%, to about 33,402. The S&P 500 SPX, -2.91% fell 95 points or 2.2%, to 4,192. The Nasdaq Composite COMP, -3.41% lost almost 334 points, or 2.6%, to around 12,538.
On Thursday, the Dow rose 614.46 points, or 1.9%, while the S&P 500 gained 2.5% and the Nasdaq Composite jumped 3.1%. The Dow and S&P 500 recorded their best daily percentage gains since March 9, while the Nasdaq had its best day since March 16, according to Dow Jones market data.
For the week, the Dow is down 1.2%, while the S&P 500 is down 1.9% and the tech Nasdaq is well on its way to a 2.4% decline, according to FactSet data, finally control.
What drives the markets?
US stocks fell sharply on Friday, with tech stocks weighed on indexes.
All 11 sectors of the S&P 500 fell, with the biggest losses showing SP500.25, -5.76%, real estate SP500.6010, -3.26% and information technology SP500.45, -3.02% from consumers, according to FactSet. Shares of Apple Inc. AAPL, -2.53% fell 2.2% after the tech giant outperformed profits and set a revenue record, but warned of additional costs of billions from supply chain woes.
Friday marks the last trading day of April, which is heading for the worst month for the S&P 500 – down 5.3% until Thursday – from March 2020. The Nasdaq has already fallen 9.4% by Thursday and also faces the worst monthly return from this low pandemic, according to FactSet.
The month was spent worrying on many fronts, including economic growth in China, where COVID-19 cases are causing lockdowns in many cities, as well as supply chain disruptions caused by the Russia-Ukraine war.
“There’s a lot the market has to fight with right now,” Reynolds said.
The CBOE VIX volatility index, + 6.40% traded around 31 on Friday afternoon, well above the 200-day moving average of about 21.5, according to FactSet.
“The petrified chase we saw this week as stock markets move from ‘we are all doomed, get me out’ to ‘I do not want to lose the bottom of the stock market, put me in’ is perhaps indicative of the confusion out there.” said Jeffrey Halley, senior market analyst at Oanda, in a note to customers.
Following weak US economic growth data for the first quarter of Thursday, the Federal Reserve’s favorable inflation index – the key consumer price index for March – rose 0.3%, with the nominal index rising 0.9%. %.
“The slowdown in core PCE inflation from year to year is very gratifying. “Inflation may have peaked in March, although the figures are still a bit ambiguous,” Bill Adams, chief economist at Comerica Bank, said in a statement.
See: US Inflation Rises to 6.6% Based on PCE – But There’s a Hope
Adding to concerns about inflation, the US employment cost index accelerated in the first quarter to 1.4%, from 1.0% in the last quarter of 2021, according to data released by the Department of Labor on Friday.
Meanwhile, the University of Michigan’s final U.S. Consumer Price Index fell to 65.2 in April from an initial 65.7, but is still the first increase so far this year.
Friday’s financial data comes ahead of the Federal Reserve’s two-day meeting next week, which many expect to conclude with a 50 basis point hike.
See: Fed interest rate hike by half a percentage point next week appeared to be baked into the cake
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 the annual BRK.A meeting, -2.13% BRKB, -1.70% of Berkshire Hathaway Inc . The event, dubbed “Woodstock for Capitalists”, had taken place over the past two years due to COVID-19.
Don’t miss: 6 things to watch as Warren Buffett hosts “Woodstock for Capitalists” on Saturday
Which companies are in the spotlight?
Shares of Intel Corp. INTC, -6.46% fell 5.9% after the chip maker remained in the full year outlook amid expected weakness this quarter. Shares of Roku Inc. ROKU, + 2.30% rose 4.9%, after the digital media maker reported that the financial income and profits of the first quarter far exceeded the forecasts according to the forecasts. The share of Robinhood Markets Inc. HOOD, -1.34% fell 0.5% after the stock market lost its first quarter forecast and said fewer people were trading on its online platform. The share of Tesla Inc. TSLA, + 0.37% recorded an increase of 2.7%. CEO Elon Musk announced late Thursday that he had no plans to sell more shares after a SEC test showed he had sold nearly $ 4 billion in electric car maker inventory amid his $ 44 billion Twitter deal. Colgate-Palmolive Co. shares CL, -4.68% fell 4.8% after the consumer goods maker said a tough cost environment continued to weigh on profits. Shares of Chevron Corp. CVX fell 2.5% after higher-than-expected earnings for oil and gas prices, but gains were not in line with expectations. Exxon Mobil Corp. XOM lost earnings estimates for the first quarter as it closed a $ 3.4 billion bill on its planned exit from Russia’s Sakhalin-1 project. Exxon shares fell 1.1%. Shares of Honeywell International Inc. HON gained 3.4% after profits and revenues exceeded expectations and the aerospace and construction company increased its prospects. Shares of AbbVie Inc. ABBV fell 8.1% after the drug company’s revenue was below Wall Street expectations. Bristol-Myers Squibb Co. BMY told investors to expect lower revenue from its anti-cancer drug Revlimid and lower adjusted earnings per share for the full year 2022. Shares fell 2.6%.
How are the other assets?
The yield on the 10-year TMUBMUSD10Y bond, 2.885%, increased by about 4 basis points to 2.9%, following the latest data on inflation. Debt returns and prices are moving in the opposite direction. Oil futures traded higher, with the US benchmark CL.1 down -0.21%, up 0.4% to around $ 105.80 a barrel. Gold for June delivery GCM22, + 1.10% GC00, + 1.10% climbed 1.1% to $ 1,912.20 an ounce. Bitcoin BTCUSD, -3.79% fell 3.6% to $ 38,507. The Stoxx Europe 600 SXXP, + 0.74% closed with a rise of 0.7% on Friday, while the FTSE 100 UKX of London, + 0.47% recorded a rise of 0.5%. The Shanghai Composite SHCOMP, + 2.41% closed 2.4% higher on Friday, while the Hang Seng Index HSI, + 4.01% in Hong Kong jumped 4%. The Japanese Nikkei 225 NIK, + 1.75% closed due to a national holiday.
—Barbara Kollmeyer contributed to this report.
