A painful April on Wall Street, which ends up burdened by technology, inflation, and even … oil

En avril, la Bourse de New York aura battu des records en territoire négatif. Sur le mois, le Dow Jones est en repli de presque -5%. Le Nasdaq en recul de plus de -13% et s

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The week closes with a serious loss on the New York Stock Exchange. And, despite the strong recovery of the previous day, this session on Friday, April 29 weighs a little more on the average of the month, which appears in red for the main US indices. The main responsibility for this dive is technology stocks. But not only that.

According to the final results at closing, the index Dow Jones fell 939.18 points, falling from -2.77% at 32,977.21 units.

The Nasdaq Compositepar excellence technological, collapsed from -4.17% losing 536.89 points to 12,334.64 points.

The S & P-500more broadly, lost 155.71 points, ie. -3.63%at 4,131.79 points.

In April, Wall Street broke a record on negative ground

During the month, the Dow Jones has almost fallen –5%. The Nasdaq down more than -13% and subscribe to the lowest level in a year. As to S & P500 with almost falling -9% per monthblames his own the worst month since the pandemic began.

To make matters worse, analysts did not all have the same interpretation of the situation and the reasons for this dive.

“A wide range of headwinds is weighing on markets, including an expected aggressive Fed tightening cycle, as well as a lockdown in China, prolonged inflationary pressures, rising bond yields and the recent rise in the US dollar,” Schab analysts said. asked by the French Agency.

Peter Cardillo of Spartan Capital believed that technology gains were the main culprits behind the fall:

“I do not think it really has to do with macro news, it’s more the bad results of companies like Amazon or Apple that burden the rest of the market. »

Big air hole for Amazon (-14%)

Amazon, one of the largest capitalists on the Nasdaq, lost a lot of weight (-14.05% to $ 2,485.63) while Jeff Bezos’s group recorded its first quarterly deficit since 2015.

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This is mainly due to a downward revision of the value of its investment in the electric car manufacturer Rivian, worth $ 100 billion in December 2021, when it had just abandoned its assembly lines. a little less than 700 vehicles …

Electric car: Rivian challenges Tesla by investing $ 5 billion in a giant factory

But the e-commerce giant is also seeing its sales hurt by inflation and has therefore cut its forecast for the next quarter.

Apple (-3.66%) is slowing down and its explanations are considered very vague

Apple, which announced after the close of Thursday, record sales of iPhone for this period of the year, but fearing that the restrictions in China and the suspension of its activities in Russia will burden its future results, fell 3.66 % at $ 157.65. During a teleconference conference on the results, top management – Tim Cook and his chief financial officer – presented several reasons for this slowdown that could be highlighted in the next quarter: but several analysts considered this speech too vague without to answer questions that remained unanswered.

Apple is running out, but the explanations of Tim Cook and his CFO are not clear, analysts say

Facebook also fell (-2.23%)

Even Facebook (Meta), which closed on Thursday with a 17% jump after better-than-expected profits and good user performance, lost ground (-2.23%). At $ 193, the value of the stock remains one-third below the ceiling at the end of 2021.

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And yet consumer confidence is good

Relatively reassuring macroeconomic news on consumer spending and confidence did not support the indicators.

Consumer spending rose 1.1% in March, driven in part by inflation. Their incomes also increased, but to a lesser extent (+ 0.5%).

Consumer confidence improved significantly to 65.2 points (+ 9.8%) even if it remains at a very low level, according to the final estimate of the University of Michigan research.

In March, inflation in the United States rose the most since 2005

But inflation, which is still at new highs, is a major concern. Thus, the personal consumer price index, measured by the PCE index, the most monitored by the US Federal Reserve (Fed), has rose 0.9% in March, the largest monthly increase since 2005after rising 0.5% in February.

In the 12 months to March, the PCE price index increased by 6.6%. This is the largest annual increase since 1982 followed by an increase of 6.3% on an annual basis in February.

Inflation at the highest level in recent decades in large economies

Excluding food and energy, the index slowed marginally (-0.1 percentage points) to 5.2%.

“Next week, the key will be the Fed monetary meeting and the release of unemployment data for April,” said Peter Cardillo.

In fact, markets expect an increase of half a percentage point (0.50%) in key Central Bank interest rates, as suggested by its chairman Jerome Powell, who said that an increase of this order was “on the table”.

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As a result, bond rates fell sharply, climbing to 2.92% from 2.82% the day before.

Oil punished despite good results (ExxonMobil -2.24%, Chevron -3.16%)

Among the companies that announced their results on Friday, the American oil giant ExxonMobil was punished (-2.24% at $ 85.25) despite the increase in turnover and its quarterly profits. Analysts expected better and ExxonMobil also had to incur a large charge over its withdrawal from Russia.

Another beneficiary of the war in Ukraine, which pushed oil prices soaring, Chevron released a net result that quadrupled in one year. His stock, however, has fallen -3.16% to $ 156.67.

All S&P sectors ended in the red, starting with the shares of consumer discretion (-5.92%) and real estate (-4.90%), followed by information technology (-4.14%)

(with AFP and Reuters)