Wall reacted in the end and closed in positive ground

The Wall Street stock index moved sharply on the first day of May with sharp fluctuations between gains and losses, but closed in positive territory at the close. Earlier, the S&P 500 was found to be at a new low of the year before beginning its recovery in the afternoon.

particularly Dow Joneswhich previously lost up to 440.96 points, finally closed with gains of 84.29 points or 0.26% at 33,061.50 points and the S&P added 23.65 points or 0.57% to 4,155.58 points. At the same time, o Nasdaq increased by 201.38 points or 1.63% to 12,536.02 points.

Of the 30 Dow shares, 17 closed in positive territory and the rest in negative. Shares of Intel, Microsoft and Home Depot led the gains with an increase of 3.14%, 2.50% and 2.19% respectively. On the contrary, the shares of Coca-Cola Co., American Express and United Health Group led the losses. with a decrease of 1.81%, 1.71% and 1.46% respectively.

It is noted that all three indices came from heavy losses in April, with “weights” waiting for interest rates to rise, uncontrolled inflation and unsatisfactory corporate results from some of the largest technology companies.

All three indices plunged on Friday, widening April’s losses. In particular, the Dow had lost 939 points, increasing last week’s losses to about 2.5%. It was the fifth consecutive week of losses for the index.

The S&P 500 fell 3.63% on Friday, its worst day since June 2020, and recorded its fourth consecutive week of losses for the first time since September 2020. The Nasdaq also recorded its fourth consecutive week of losses, as it fell by 4.2% on Friday. Both indices recorded the lowest closing levels for the year.

The Dow and the S&P 500 were in their worst month since March 2020, when the pandemic began. The Dow closed 4.9% lower in April, while the S&P fell 8.8%. Even bigger losses for April were recorded by the technology Nasdaq, which slipped 13.26%, in its worst month since October 2008, due to the sharp decline of technology companies.

Netflix fell 49% in April, while Amazon and Meta lost 24% and 10.8% respectively. Today, Netflix reacted with a rise of 4.78%, while shares of Amazon and Meta gained 0.18% and 6.25% respectively.

Technology was a special “thorn” in April. UBS Art Cashin told CNBC that shares of Apple and Amazon in particular could be a barometer for the continuation of the market.

Technology stocks have been hit particularly hard in recent times, as their often elevated valuations and the promise of future growth seem less attractive in an environment of rising interest rates.

Meanwhile, volatility in the bond market most likely contributed to stock fluctuations on Monday. The yield on the 10-year US bond increased by more than 3% for the first time since 2018 today. “3% is definitely important. It’s a psychological level that makes investors worry about what the Fed is going to do,” said Miller Tabak’s Matt Maley.

Investors are also expecting the Federal Open Market Committee (FOMC) to issue a statement on the Fed’s monetary policy on Wednesday, followed by statements by US Federal Reserve Chairman Jerome Powell. Analysts expect interest rates to rise by 50 basis points as the Fed’s two-day monetary policy meeting concludes on Wednesday.

“With inflation so high and profit growth slowing rapidly, stocks are no longer providing the inflation hedge that many investors rely on,” said Michael Wilson, an analyst at Morgan Stanley.

At the same time, Berkshire Hathaway announced stronger-than-expected earnings over the weekend, after announcing that it had proceeded with the purchase of own shares worth $ 3.2 billion. Chairman and CEO Warren Buffett said, among other things, that the company acquired almost 10% of Activision Blizzard, the video game maker that agreed to be acquired by Microsoft.

A key macro is expected to be announced on Friday, when the April job data will be released.

The corporate period is now more than halfway through, but many companies are still expected to publish their results next week, including Expedia, MGM Resorts, Pfizer, Airbnb, Starbucks, Lyft, Marriott, Yum Brands, Uber eBay and TripAdvisor.

Of the more than 280 S&P 500 companies that have reported earnings so far, 80% have exceeded earnings estimates and 73% have exceeded revenue expectations, according to FactSet.

At the end of the day, the ISM index for US factories fell 1.7 points to 55.4% in April and showed that the industrial side of the economy grew at the slowest pace in 18 months, reflecting broad supply disruptions. and labor and strong inflationary pressures.

Economists polled by the Wall Street Journal forecast that the index would rise to 57.8% from a year and a half low of 57.1% in March. Any percentage above 50% signals growth.

The report, compiled by the Institute for Supply Management, is considered a “mirror” of the health of the US economy. The index has been very strong for most of the last two years and is still historically high, but has been weakening lately.

Meanwhile, U.S. construction spending rose slightly in March, as the modest increase in spending on private projects was partially offset by further cuts in public spending.

The country’s Ministry of Commerce announced on Monday that construction costs increased by 0.1% after an increase of 0.5% in February. Economists polled by Reuters forecast that construction costs would rise by 0.7%. Construction costs increased by 11.7% year-on-year in March.