LAST UPDATE: 19.30
The main stock indices on Wall Street are moving with negative signs on Thursday, with traders, in an atmosphere of inflationary pressures and fears for the economic prospects in the US and internationally, fighting but not being able to “turn the game”.
On the dashboard, the industrial Dow Jones falls by 261.78 points or 0.82%, with the widest S&P 500 to “lose” 23.44 or 0.63%, while the technological Nasdaq records losses of 27.18 points or 0.28%.
Some names that have been particularly affected in recent times, such as Lucid Group and Zoom Video, along with the meme stocks of the once “Reddit frenzy”, such as GameStop and AMC, have moved strongly upwards during the session, with both the latter to be strengthened by up to 30% and 20% respectively.
The share of Rivian Automotive also jumped 22% earlier, after the announcement of quarterly results.
“In my opinion, this is a market that deals primarily with emotional reactions and not on logic,” said Jim Lebenthal of Cerity Partners. “Every day we have intra-conference turns,” he adds.
“Even when you are in a bear market, there are rallies that can be very intense,” said Truith’s Keith Lerner.
Technology giants such as Amazon and Netflix are seeing their shares rise more than 4%, while Tesla’s share is also moving upwards.
Disney is falling to a two-year low after announcing 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.
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.
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.
Shares have been under pressure lately, mainly due to inflationary pressures and the prospect of ever-increasing interest rates affecting the investment climate. Since the beginning of the year, the S&P 500 has lost about 18% of its all-time high in January.
Of the 30 Dow shares, 10 are positive and 19 are negative. The profits are led by those of Home Depot, IBM and Salesforcewhile those losses of Boeing, Apple and American Express.
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
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
