Technology’s Nasdaq and S&P 500 cut their losses, while the industrial Dow Jones is fighting for the positive sign, with the climate remaining fragile as investors were faced with a barrage of weak macroeconomic data that brought back to the forefront of its concerns world economy.
Concerns about the prospects for growth in an environment of increasingly high interest rates have led to a free fall in US market indices in recent weeks. The Dow Jones industrial average lost 2.1% last week, while the broader S&P 500 fell 2.4% and the tech Nasdaq fell 2.8%. The S&P 500 completed six consecutive weeks of losses, marking its worst run since June 2011, while the Nasdaq fell for a sixth straight week, its worst run since November 2012.
The data released today in the US and China disappointed investors and confirmed the concerns that the two largest economies in the world are facing significant challenges. The data showed a decline in manufacturing activity in New York State and a decline in industrial activity and retail sales in China.
Indicators – Statistics
On the board, the Dow Jones gained just 8.55 points or 0.03% at 32,205.21 points, while the broader S&P 500 fell 14.07 points or -0.35% to 4,009.96 points. The technology Nasdaq loses 121.60 points or -1.03% to 11,678.54 points.
Of the 30 stocks that make up the Dow Jones industrial average, 14 are moving with a positive sign and 16 with a negative. The biggest gainers were Chevron with profits of $ 5.01 or 2.99% at $ 172.89, followed by Merck & Co with profits of 1.70% to $ 91.95 and Verizon Communications at 48 , $ 83 with an increase of 1.35%.
On the other hand, the three stocks with the biggest losses are Salesforce (-1.87%), Walt Disney (-1.74%) and American Express (-1.69%).
At the end of the day, the New York Fed’s Empire State Index for the state of manufacturing activity fell 36.2 points to -11.6 in May, refuting analysts’ estimates that expected a softer fall to 16.5. Measurements below zero show a deterioration in business conditions.
In China, data released today showed that factory activity and retail sales plunged in April amid lockdowns to curb Covid-19.
In particular, retail sales decreased by 11.1% compared to the previous year. This is the biggest drop since March 2020. At the same time, factory production fell 2.9% compared to the previous year, refuting expectations for a rise and recording the biggest drop since February 2020.
From the “front” of corporate results, large retail chains will be in the spotlight this week as Walmart Inc. announces its quarterly statements on Tuesday. and Home Depot Inc. to be followed by Target Corp. and Lowe’s Cos.