Wall Street is deep red on a day that promises to be the worst since the start of 2022. The Nasdaq fell 4.96% to 12863.69 points, the Dow Jones lost 2.99% to 33,043.86 points while the S&P 500 leaves 3.36% at 4,155.80 points on the floor. The collapse is likely due to the resurgence of inflation fears and lower-than-expected economic growth. to influence the trend There is also a sudden increase in weekly unemployment benefitsindicating that the US labor market is actually less healthy than expected.
The most noticeable declines were in high-growth stocks, With Apple and other tech giants like Amazon, Tesla, and Microsoft which fell between 5% and 8%. In addition to the negative trend, Etsy and eBay have declined 16.9% and 10.57% respectively after expectations It fell for the second quarter and Shopify was down 17% after being below market expectations. Energy stocks also fellChevron stock is down 1.46%, ExxonMobil is down 1.95%, and ConocoPhillips is down 2.51%. The aerospace sector was also negative, with Lockheed Martin losing 1.26% and L3Harris Technologies losing 0.83%.
European stock exchange response
European stock markets, after a bright morning, which hit the trend of Wall Street. In Piazza Affari, the Ftse Mib index closed down 0.60% to 23,759.71 points after the start of the sprint. counter trend Unicredit, which closed up 2.08%, is best on the list, after quarterly results. Banca Mediolanum also performed well, +1.16%, and Campari, +1.08%. Moncler collapsed -5.63%, but so did Iveco, -3.07%, Pirelli, -2.80%, Enel -2.24% following the quarterly report. Tim scores -1.62% after the quarter. Ignition in spreads and yields on government bonds, in the wake of US Treasuries. The 10-year BTP yield rose more than three percent to +3.03%, in the end, the Bund made 1.04% and The difference stands at 198 basis points. In Europe, Frankfurt (-0.49%) and Paris (-0.43%) were also negative, while London rates rose slightly to +0.17% after British interest rates rose from a quarter point to 1%.
Federal Reserve decision
The Federal Reserve raised its federal funds policy rates by 0.50% to a range of 0.75% to 1% and announced that it will begin cutting its balance sheet starting in June. Half point was unanimously modified, It was expected by the market and represents the widest intervention since May 2000. The goal is to combat inflation, which rose in March to 8.5% as it had not since 1981. Jerome Powell specifically ruled out the possibility of a 0.75 percentage point increase At a future meeting, while traders have so far rated the probability of such a scenario at 99% at the upcoming Federal Reserve meeting in June. However, after the mass ecstasy, the market wakes up and realizes that None of the structural problems that led to its collapse have been resolvedAdam Sarhan of 50 Park Investments noted. Inflation remains high – as defined – the Fed will continue to raise rates and the picture of slow growth has not changed.
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