The front of the New York Stock Exchange (AFP / ANGELA WEISS)
The New York Stock Exchange closed the week with serious losses, nullifying the strong recovery of the previous day and closing April in red, burdened by technology.
According to the final results at the close, the Dow Jones index fell 2.77% to 32,977.21 points. The Nasdaq heavyweight fell 4.17% to 12,334.64 points and the S&P 500 fell 3.63% to 4,131.93 points.
During the month, the Dow Jones fell almost 5%. The Nasdaq has fallen more than 13% and is at its lowest level in a year. As for the S&P 500, with a drop of almost 9% during the month, it records its worst month since the beginning of the pandemic.
“A wide range of headwinds is weighing on markets, including an expected aggressive Fed tightening cycle, but also a lockdown in China, prolonged inflationary pressures, rising bond yields and the recent rise in the US dollar,” Schw analysts said.
“I do not think it really has to do with macroeconomic news, it’s probably the bad results of companies like Amazon or Apple that are burdening the rest of the market,” said Peter Cardillo of Spartan Capital.
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.
This is mainly due to the downgrade of the value of its investment in the electric car company Rivian, but the e-commerce giant also sees its sales hurt by inflation and has reduced its forecasts for the next quarter.
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.
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.
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.
Inflation, measured by the PCE, the most watched by the US Federal Reserve (Fed), rose 6.6% year-on-year and 0.9% month-on-month. Excluding food and energy, the index slowed marginally (-0.1 percentage points) to 5.2%.
“The key next week will be the Fed monetary meeting and the release of unemployment data for April,” said Peter Cardillo.
Markets expect a rise of half a percentage point (0.50%) in key central bank interest rates, as suggested by President Jerome Powell, who said an increase in that range was “on the table”.
As a result, bond rates fell sharply, climbing to 2.92% from 2.82% the day before.
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. However, its title fell 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%)