Traders work on the floor of the New York Stock Exchange (NYSE) in New York, USA, April 4, 2022. REUTERS / Brendan McDermid / File Photo
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- Amazon is collapsing after results and prospects are inadequate
- Apple slips after reporting supply problems
- Monthly inflation has risen the most since 2005
April 29 (Reuters) – Wall Street ended sharply lower on Friday after Amazon collapsed after a grim quarterly report and as the biggest jump in monthly inflation since 2005 scared investors who are already worried about rising interest rates interest.
Amazon.com Inc (AMZN.O) fell in its steepest one-day decline since 2006, leaving widely held stocks near two-year lows. Late Thursday, the e-commerce giant unveiled a disappointing quarter and prospects overshadowed by higher costs of warehouse management and package delivery. Read more
Apple Inc. (AAPL.O), the world’s most valuable company, fell after its disappointing outlook overshadowed record quarterly profits and sales. Read more
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All 11 sector indices of the S&P 500 fell, led lower by Consumer Discretionary (.SPLRCD) and Real Estate (.SPLRCR).
Adverse results and concerns about the Federal Reserve’s aggressive tightening of monetary policy have affected megacap technology and growth stocks this month.
“Market participants are nervous at first, so there’s a quick trigger when it comes to these names, when there’s some uncertainty,” said Keith Buchanan, senior portfolio manager at Globalt Investments in Atlanta. “When the growth assumptions of these companies fail to materialize, then there is definitely a mentality to ‘shoot first and ask questions later.’
The Nasdaq (.IXIC) lost about 13% in April, its worst monthly performance since the 2008 global financial crisis.
In addition to Wall Street concerns, the data shows that the consumer price index – the Fed’s preferred measure of inflation – rose 0.9% in March, after rising 0.5% in February. . Read more
The Fed is set to meet next week, with traders betting on raising interest rates by 50 basis points to fight rising inflation.
Signs of aggressive tightening of monetary policy, the war in Ukraine and the blocking of COVID in China fuel fears of an economic slowdown. Thursday’s data shows that the US economy contracted unexpectedly in the first quarter. Read more
According to preliminary data, the S&P 500 (.SPX) lost 155.51 points, or 3.60%, to finish at 4132.94 points, while the Nasdaq Composite (.IXIC) lost 533.40 points, or 4.14%, to 12,338.13. The Dow Jones Industrial Average (.DJI) fell 937.80 points, or 2.77%, to 32,978.59.
Exxon Mobil Corp. (XOM.N) slipped after taking a $ 3.4 billion write-off due to its exit from Russia. Chevron Corp (CVX.N) fell after its first-quarter profit fell. Read more
The earnings season for the first quarter was generally better than expected so far. Nearly half of the S&P 500 companies reported by Thursday, and 81% of them exceeded Wall Street expectations. Usually only 66% exceed estimates, according to Refinitiv.
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Report by Bansari Mayur Kamdar and Devik Jain in Bengaluru and by Noel Randewich in Auckland, California; Edited by Arun Koyur, Aditya Sony and David Gregorio
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