The Dow Jones industrial average gained momentum in the end, although it was found to lose more than 400 points in the low of the day, while the wider S&P 500 significantly reduced its losses, closing at -0.8%, although it was found earlier to lose more than 2%.
The Nasdaq closed in deep red, with the technology index falling 2.35%, while in its lows it was found to fall more than 3%, in the wake of the warning of Snap, the parent company of the Snapchat application, for the course of their profitability. next months.
Snap shares fell 43% today in the wake of the company warning that it is expected to lose quarterly estimates as the economy “deteriorated more and faster than expected”.
Snap’s warning has affected other tech companies that rely heavily on revenue-generating ads. Facebook’s Meta Platforms lost 7.6%, Pinterest fell 23.4%, Google’s parent company Alphabet lost 5.1% and Twitter fell 5.2%.
Indicators – Statistics
On the board, Dow Jones added 48.38 points or 0.15% and closed at 31,928.62 points, while the S&P 500 fell 32.27 points or -0.81% to 3,941.48 points. The technology Nasdaq lost 270.83 points or -2.35% and fell to 11,264.45 points.
Of the 30 stocks that make up the Dow Jones industrial average, 18 closed with a positive sign and 12 with a negative. The biggest increase was recorded by McDonald’s with gains of $ 6.52 or 2.74% at $ 244.52, followed by Verizon Communications at $ 50.68 with an increase of 2.03% and IBM with gains of 2.01 % at $ 133.80
On the other hand, the three stocks with the biggest losses were Walt Disney (-4.01%), Boeing (-3.76%) and Visa (-2.38%).
The index recorded impressive gains on Monday, with the industrial Dow Jones adding 618.34 points or 2% and the broader S&P 500 gaining 1.9%. The technology Nasdaq strengthened by 1.6%. Monday’s rise followed the biggest weekly loss for the Dow Jones since 1932 and the temporary collapse of the S&P 500 in bear-market area last week.
At the end of the day, economic activity in the US slowed down again in May, as high inflation and supply chain problems continue to weigh on US companies.
In particular, the composite PMI for services and manufacturing fell to a four-month low of 53.8 in May from 56.0 in April, according to preliminary data from S&P Global.
The services business index slipped to a four-month low of 53.5 points from 55.6 points in April, while the manufacturing PMI fell to a three-month low of 57.5 points from 59.2 points a year earlier. month.
“Preliminary data from the May survey show that the recent growth spurt has lost further momentum,” said Chris Williamson, chief economist at S&P Markit. “Companies say demand is driven by worries about the cost of living, higher interest rates and the wider economic slowdown,” he added.