After the Nasdaq’s biggest drop in nearly two years on Thursday, it signaled further declines in pre-trading on Wall Street on Friday. Barely two hours after the opening on Friday, the pullback turned positive before pulling back.
The three major indices ended the week of the stock market lower.
- Nasdaq Composite Index: -1.4 percent
- Dow Jones: -0.3%
- Standard & Poor’s 500: -0.57 percent
The Nasdaq Composite Index peaked on Wednesday afternoon. Since then, the tech index has fallen more than six percent, and so far this year, the tech stock market is down 22 percent. The broad S&P 500 is down 13 percent so far this year, while the industry-heavy Dow Jones is down 9.6 percent, he wrote. The Wall Street Journal.
Many investors are now selling “anything” to make a profit, and this creates significant selling pressure in the stock market, strategic analyst Danny Kirsch at Wall Street brokerage Piper Sandler tells the newspaper. The usual analyzes do not hold up at the moment.
– It’s the “go to criticism” mentality. Nothing works, he says about the market.
With the exception of Apple, which saw a one-day spin, big tech stocks also closed in the red. For a while, Apple shares fell 1.4 percent, but then rose 1.7 percent before dropping again. When the stock exchange closed, the stock rose 0.4 percent.
- Apple: 0.4%
- Microsoft: -0.9 percent
- Alphabet C -0.6 percent
- Amazon: – 1.4 percent
- Tesla: – 0.8 percent
- Meta: – 1.3%
Wage growth concerns
On Friday, new US employment and wage growth figures were released.
In April, 428,000 people got new jobs, clearly exceeding expectations. Meanwhile, wage growth was 5.5 percent, more than five percent for the fourth consecutive month.
Many interpret wage growth as a sign of further pressure on inflation, which is now the primary concern of the market and economists.
The US Federal Reserve has interpreted rising inflation as a temporary phenomenon, and is now being criticized for its delay in taking action. The central bank’s goal is to try to cool inflation, which has reached historically very high levels.
Inflation in the US in March rose to 8.5 percent on a 12-month basis, the fastest increase in 40 years. Next week, the April figures for US inflation will be published, and they will be followed up with controversy.
On Wednesday, the Central Bank’s Interest Rate Committee decided to raise the key rate by 0.5 point to 0.75 – 1.0 percent. At the same time, Central Bank Governor Jerome Powell indicated that it is not appropriate to raise the interest rate by 0.75 points at once. At the same time, he noted several increases in interest rates by 0.5 point.
After a warm reception for the interest rate decision and Wednesday’s signals of a sharp rise on Wall Street, Thursday ended with the biggest drop in nearly two years on the Nasdaq:
- Nasdaq Composite -4.99%
- Dow Jones -3.12%
- Standard & Poor’s 500 -3.56 percent
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