U.S. stock indices moved mostly lower and sales of technology stocks deepened as investors’ concerns about economic growth and rising interest rates continued to weigh on the markets.
The S&P 500 fell 0.8% on Tuesday. The Tech-Heavy Nasdaq Composite fell 2.4%, while the Dow Jones Industrial Average rose 0.2%. All three indices rose in the afternoon after falling in morning trade.
Investors are considering a variety of signals as they try to map the trajectory of the US economy. Many are worried that the Federal Reserve’s tightening plans to reduce inflation could push the economy into recession.
“Usually the catalyst for a turnaround is the central bank,” Russ Kosterich said.
“At the moment, given the fact that they have a lot of work to do to reduce inflation, it is obviously difficult for the Fed to ride to recovery.”
Tuesday’s losses indicate a sharp retreat from Monday. When mobilizing key US codes After a volatile trading session the previous week. But it was a late Monday Profit and Revenue Alert From the social media company
Again spoiled the sentiment of investors. Disappointing statement on Tuesday New home sales in the U.S. fell in April And the mood faded.
Shares of Snapdragon fell 44% on Tuesday afternoon as investors digested comments that the macroeconomic environment was worse than expected. Concerns about disruptions to Snap’s advertising revenue have rippled through other tech stocks affected this year.
7.6% and Google Parent
Meanwhile, chief economist Steven Ricciuto said the home sales data, which fell short of economists’ expectations, was another indication that the central bank’s rate hike was already slowing the real economy.
“This is a very weak number,” he said, adding that this trend is a sign that more and more home buyers are being pushed out of the market. The interest rate on mortgages increases.
Concerns about a slowdown in growth amid high inflation were one of the stimuli that sent the S&P 500 down 17% from January to Monday. Investors are now closely watching whether the S&P 500 enters the bear-market region, defined as a fall of at least 20% from the recent rise. On Friday, the benchmark index came to a close before the bear market The late session was saved by the rally.
On Tuesday, stocks that had gained a foothold in the physical economy continued to make short losses or gains as large technology companies fell. The S&P 500 sectors, such as consumer goods, energy and real estate, saw their footsteps positively in the afternoon.
Tim Courtney, chief investment officer at Exencial Wealth Advisors, took issue with inflation and the central bank’s response as a sign that the fundamental health of the economy is a greater concern for many investors.
Wealth management clients have been taking the stock market slump this year with improvement, but as bear-market levels approach the S&P 500, their fears have increased, Mr. Courtney said.
“Last week, when we approached that magical bear-market ban, I think worries started to rise,” he said.
Tuesday’s sell-off in technology stocks led investors to hold government bonds as yields on a 10-year U.S. Treasury note fell 2.757% to 2.758% on Monday. The yield of a bond decreases as its price rises.
Mr. Blackrock. According to Kosterich, volatile trading in both the stock and bond markets this year has led his group to keep more money in the fund’s portfolio.
“Fluctuations in the stock markets are the cause of fluctuations in the stock markets,” he said. “In that context, money becomes one of the most effective risk mitigation factors.”
Disappointing revenues and warnings across the corporate landscape have heightened fears.
After losing the first quarter amid high costs, it became the latest retailer to impress investors on Tuesday. Shares of the company fell 29%.
Mr. of Mizuho. Ricchiuto warned that Wall Street’s corporate earnings expectations could weaken further and send stock prices even lower as more analysts agree with the central bank’s strong commitment to controlling inflation.
However, there are glimmers of hope. On Monday,
Said American consumers seem to be in good financial health. But with the revelation from a company called Snap, the depiction of that sanguine was quickly balanced. No revenue warning has been issued before.
“We’m going to be on this roller-coaster ride for a while, with investors still sticking to optimistic data points and get new disappointments when it comes to another downline reading,” said Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown. . “We do not yet know the full path of interest rate hikes or how flexible consumers will be.”
Despite widespread tech sales on Tuesday, there were bright spots in the market.
Video conferencing service rose 5.6% after the company Raised its profit perspective.
Gold, another safe haven, rose 0.9% to $ 1,864.40 a troy ounce.
Brent crude was up 0.1% at $ 113.56 a barrel, according to international oil standards.
“Oil prices are falling somewhat due to global growth, which is not a major indicator of the health of the global economy.”
In Europe, the Pan-continental Stoxx Europe 600 lost 1.1%. In Asia, Hong Kong’s Hong Cheng fell 1.7%. Japan’s Nikkei 225 lost 0.9%, while China’s Shanghai Composite fell 2.4%.
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