An attempt to recover on Wall Street led by the Meta rally

With an ally of a number of better-than-expected results and the title of Facebook parent holding a rally, the US market is trying to make up for some of April’s big losses.

In particular, the Dow Jones industrial average is up 33.458 points, up 0.5%, the broader S&P 500 is up 0.8% at 4,216 points, and the tech-savvy Nasdaq, which has been at the center of liquidations all month , today moves with an increase of 0.75% to 12,582 units.

The investment mood today is guided by some strong corporate results that were announced in the last few hours and seem to put aside for a while the wider concerns of the last period, but also the negative macroeconomic data of the day.

As mentioned above, Meta, the parent company of Facebook, sees its title jump 14% in the aftermath of the results announced yesterday after the end of the session, surpassing the estimates in its earnings with $ 2.72 per share compared to forecast 2, $ 56.

Qualcomm follows closely with a rally of almost 7%, after its own strong results, while PayPal also strengthens by 3.4% despite the weak guidance it gave for the second quarter.

At the same time, Eli Lilly strengthened by 2.8%, Merck by 3.6% and Southwest Airlines by 3.2%, after the best results results announced by all three.

Amgen and Caterpillar, on the other hand, are putting pressure on the Dow Jones, with losses of more than 4.5% both.

As Crossmark Global Investments’ Victoria Fernandez points out, “it was a pretty good corporate results season and that supports the stock market.”

Overall, however, April has been an extremely difficult month for the US market, amid worries about the global recovery, persistent rising inflation and the Fed tightening monetary policy.

In addition to the negative news today was added the unexpected decrease of 1.4% of US GDP in the first quarter of the year, while estimates spoke of an increase of 1%.

The development is attributed to a number of factors, such as the increase in coronavirus cases due to Omicron that hit the economic activity, the spike in inflation to a high of almost 40 years, and the Russian invasion of Ukraine.

However, much of the decline in GDP is attributed to the growing US trade deficit, as strong consumer spending and business investment show that the US economy continues to expand.

In any case, the S&P 500 is at -7.7% for the whole of April and is heading for the biggest monthly drop since March 2020, when the pandemic arrived in the US.

The Nasdaq is moving even worse with monthly losses of 12% so far and is on track for its biggest monthly decline since October 2008 of the global financial crisis, while the Dow Jones has made some defenses by limiting its losses to 4%.

Finally, it is worth noting that the US labor market maintains its strong momentum, with unemployment benefit applications remaining at decades low.