Losses … continue on Wall Street, looking at inflationary pressures

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Losses … continued on Wall Street, with key stock indices recording new losses and the sell-off having led the overall S&P 500 to its lowest levels in over a year, opening the spectrum of an upcoming bear market, mainly under the weight of the rising inflation wave.

On the dashboard, the industrial Dow Jones declines by 280.12 points or 0.88%, with the widest S&P 500 to “lose” 42.51 or 1.08%, at its lowest levels since March 2021, while the technological Nasdaq There are losses of 141.08 points or 1.39%, as technology stocks continue to be at the center of the action of sellers, who generally get rid of high-risk investment products.

According to the latest data on consumer price inflation, the index for April in the US stood at 8.3%, higher than estimates and quite close to the 40-year high of 8.5%, which moved in March. Following the relevant data, the investors moved, abandoning, among other things, technology shares and bitcoin.

“Stocks are being sold all over the world and the market spirit is getting darker and darker,” Vital Knowledge’s Adam Crisafulli said in a statement.

Apple is losing more than 3%, having entered the bear market, after trading 22% lower than its high of the last 52 weeks. On Wednesday, Saudi Aramco surpassed the American technology giant as the company with the largest capitalization in the world.

Shares of Amazon and Microsoft, as well as Salesforce, are falling sharply.

Disney “pulls” the Dow Jones down, falling strongly, after the announcement of mixed quarterly results. It announced a larger-than-expected increase in subscribers to its streaming business, but warned of the impact of Covid’s new boom on its theme parks in Asia. Shares of Boeing and American Express are also falling.

Data on US producer prices, which rose 11% year-on-year in April, did little to change the market climate.

Bitcoin sank below 27,000 on Thursday morning, amid the collapse of the controversial stablecoin TerraUSD.

Even so, Fundstrat’s Tom Lee remains bullish on equities. When the market finds its pace, he notes, “we will continue to be in a world of double-digit returns.”

He adds that, from the 16 times since 1940 that the market lost 16% in a period of four months, in 12 within six months it had recovered the total losses and was moving higher.

Of the 30 Dow shares, 11 are positive and 18 are negative. The profits are led by those of Home Depot, Walmart and Amgenwhile those losses of Walt Disney, Boeing, Apple.

US: Rise in producer prices and unemployment benefit applications

The cost of goods and services at the wholesale level increased by 0.5% in April from the previous month, with inflationary pressures in the economy continuing on a large scale for another month, driven mainly by the rally in energy prices.

Annual growth slowed to 11% from 11.5% last month, according to government figures. This is the first fall since the outbreak of the pandemic.

The average estimates of analysts in a Reuters poll spoke of a monthly increase of 0.5% and an annual 10.7%.

Excluding energy and food, the structural index of producer prices increased by 0.4% from the previous month and 8.8% from the corresponding period last year.

The number of Americans applying for new unemployment benefits rose last week, much to the surprise of analysts who expected it to decline.

In particular, the initial unemployment benefit applications increased by 1,000 to the seasonally adjusted size of 203,000 for the week ended May 7, according to the US Department of Labor. This is the highest level since last February.

Analysts’ average estimates in a Reuters poll put the applications at 195,000 for the previous week.

The number of ongoing applications fell by 44,000 to 1.34 million for the week ended April 30th. This is the lowest level since the early 1970s.

Source: Capital

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