Skip to content
Dansealsforcongress

Dansealsforcongress

Finance Leader

Primary Menu
  • Crypto News
  • Insurance
  • Mortgage
  • News Biz
  • Biz News
  • Finance
  • About Us
    • Advertise Here
    • Contact Us
    • Privacy Policy
    • Sitemap
  • Home
  • Why did the stock market fall? Dow finishes nearly 1,000 points lower in worst day since October 2020
  • Stock Market

Why did the stock market fall? Dow finishes nearly 1,000 points lower in worst day since October 2020

By Tori 11 months ago

U.S. stocks fell sharply on Friday to suffer their biggest one-day drop since 2020, as investors continued to weigh hawkish comments on interest rates a day earlier by Federal Reserve Chairman Jerome Powell, as well as a fresh batch of corporate earnings that largely disappointed.

How did stocks trade?
  • The Dow Jones Industrial Average
    DJIA
    fell 981.36 points, or 2.8%, to close at 33,811.40, after declining 1,019 points at its session low. The blue-chip gauge saw its steepest one-day percentage loss since Oct. 28, 2020.

  • The S&P 500
    SPX
    dropped 121.88 points, or 2.8%, to end at 4,271.78.

  • The Nasdaq Composite
    COMP
    finished at 12,839.29 after a drop of 335.35 points, or 2.6%. The S&P 500 and Nasdaq each suffered their biggest one-day drops since March 7.

The Dow and S&P 500 on Friday posted their lowest finishes since March 15, while the Nasdaq closed at its lowest since March 14.

On Thursday, stocks gave up strong gains, reversing sharply lower. With Friday’s plunge, the Dow suffered a 1.9% weekly decline, its fourth straight loss. The S&P 500 dropped 2.8% and the Nasdaq tumbled 3.8% for their third consecutive weekly drops.

What drove the market?

Stock-market weakness picked up Friday where Thursday’s selloff left off, when equities tumbled into the afternoon after Powell added his support for moving faster on raising interest rates to cool inflation, measures that would include a possible 50 basis point interest rate hike in May.

“It would seem investors have been too complacent about the upcoming [Fed] meeting, which will need to change,” said Michael Kramer, founder of Mott Capital, in a note.

The Cboe Volatility Index
VIX,
an options-based measure of expected volatility over the next 30 days, had been too low heading into the May 3-4 Federal Open Market Committee, or FOMC, meeting, Kramer said. It rose Thursday and was up another 19.5% at 27.1- on Friday, moving above its long-term average just below 20.

Powell’s remarks appeared to make a half percentage point rate hike the base case, with the central bank also likely to announce the beginning of the unwinding of its balance sheet, Kramer said.

Meanwhile, traders of fed funds futures have priced in a 94% chance that the Federal Reserve will deliver a 75 basis point rate hike in June, up from 70% on Thursday and 28% a week ago, according to the CME FedWatch Tool. 

Stocks trimmed losses somewhat in afternoon activity after Cleveland Fed President Loretta Mester, in a television interview, said she remained in favor of 50 basis point rate increases, but saw no need for the “shock” of a 75 basis point increase. The bounce proved short-lived, however, with stocks falling to new session lows ahead of the closing bell.

The benchmark 10-year Treasury yield 
BX:TMUBMUSD10Y,
meanwhile, pulled back slightly to around 2.89% after climbing about 8.1 basis points to 2.917% on Thursday, the highest since Dec. 4, 2018.

Read: How to invest as inflation, higher interest rates and war roil markets

The Fed’s hawkish shift and the relentless rise in Treasury yields may be sapping the previous appeal of equities, which had previously been seen as the only viable avenue for many return-seeking investors.

“Investors appear to be moving away from the TINA (There is no Alternative) narrative as of late when it comes to equities,” said Brian Price, head of investment management at Commonwealth Financial Network, in a note. “This is the second straight week of significant outflows from equity mutual funds and days like today are unlikely to change the sentiment moving forward. The one positive takeaway may be that sentiment has become too bearish and we could see a countertrend rally at some point in the coming weeks.”

In One Chart: Investors just pulled a massive $17.5 billion out of global equities. They’re just getting started, says Bank of America.

All 11 major S&P 500 sectors fell Friday, with healthcare dropping 3.6% after a downbeat profit forecast from HCA Healthcare Inc.
HCA
sent its shares tumbling 21.8%. Other hospital operators, including Tenet Healthcare Corp.
THC,
Community Health Systems Inc.
CYH
and Universal Health Services
UHS
also fell between 14% to 17.9%.

However, of the 99 companies in the S&P 500 that have reported earnings for the first quarter, 77.8% of them have beat market expectations. Typically, 66% of companies beat estimates, according to Refinitiv data.

Next week will mark another big week for earnings, with 558 companies reporting, Saxo noted. “It is the big test of companies’ ability to pass on costs to their customers,” they said.

Investors may also be skittish ahead of the final round of France’s presidential election on Sunday. An upset victory by far-right candidate Marine Le Pen over incumbent Francois Macron would likely spark market volatility, analysts said.

See: Here’s how markets are positioned for Sunday’s presidential election in France between Macron and Le Pen

What companies were in focus?
  • Gap Inc.
    GPS
    stock tumbled 18%, following a bigger-than-expected drop in sales and as the retailer announced the departure of Old Navy CEO Nancy Green.

  • Shares of Qualtrics International Inc.
    XM
    fell 10.5% after the experience-management software company reported fiscal first-quarter forecast-beating revenue.

  • Snap Inc.
    SNAP
    shares rose 1.2% after the social media group reported quarterly revenue that fell short of Wall Street’s expectations.

  • Shares of American Express Co.
    AXP
    fell 2.8% after topping earnings expectations Friday amid a continued rebound in travel and strong spending trends among younger consumers.

  • Verizon Communications Inc.
    VZ
    fell 5.6% after its earnings report showed a net loss of postpaid phone subscribers in its latest quarter, calling out “competitive dynamics within the industry,” though it said it had its best quarter of broadband net additions in more than a decade.

How did other assets trade?
  • The ICE U.S. Dollar Index 
    DXY
     rose 0.5% to trade at its highest since March 2020.

  • Bitcoin 
    BTCUSD
    fell 4.5% to trade near $39,400.

  • The U.S. oil benchmark
    CL
     fell $1.72, or 1.7%, to settle at $102.07 a barrel on the New York Mercantile Exchange, falling 4.1% for the week.

  • Gold
    GC00
    fell $13.90, or 0.7%, to settle at $1,934.30 an ounce, leaving a 2.1% weekly fall.

  • The Stoxx Europe 600
    XX:SXXP
    dropped 1.8% while London’s FTSE 100 
    UK:UKX
    fell 1.4%.

  • The Shanghai Composite 
    CN:SHCOMP
     rose 0.2%, while the Hang Seng Index 
    HK:HSI
    slipped 0.2% in Hong Kong and Japan’s Nikkei 225 
    JP:NIK
    fell 1.6%.

Tags: "Succeeded His Business", 2 Of Cups Business, 525 Business 5 Bankruptcies, Accounting Business Letter To Client, Bracken Business Communications Clinic, Business Account No Deposit, Business Administration Fafsa, Business Balance Sheet Explained, Business Card, Business Card Printing La Plata, Business Card To Secret Website, Business Cards Media Bar, Business Central Png, Business Coaching Site Cloudfront, Business Contract Lawyer 47201, Business Marketing Pearson Quizlet, Business Milleage Leager 18, Business Mobile Broadand Plans, Business Plan For Supplement Company, Business Plan Loan Originayor, Disrupting Digital Business Harvard, Ffiec Business Continuity Templates, Gauge Ear Piercing Business, Good Openings For Business Letters, Holton Investment Business, Indiana Wesleyan University Business, Indianapolis Business Times, List Business In Search Engines, List My Business Yahoo, Lunch Susbcription Business Model, Morgan Hill Business Liocense Renewal, Nee Small Business Bill Signed, Negotiating Business Acquisitions Practical Law, Networking Trends Small Business, New Business In Shorewood Il, School Business Officer Being Unethical, Small Business Administration Mass, Small Business Comunity, Small Business Corporation South Africa, Small Business Depew Llc, Small Business Medical Offices Chicago, Small Business Office Lakewood Nj, Small Business Plans Verizon, Small Business Storage Array, Small Business Sucess Stories, South Florida Business Journal Twitter, Torrington Ct, United Business Tech Response Sla, United Domestic Business Food, Video Business Woman Bukkake, Ways To Improve Business Technologyreddit

Continue Reading

Previous Content Marketing Guide for Small Businesses
Next Bang! Zowie! BOOM! How HubSpot CRM Enables Business Growth Superpowers
March 2023
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031  
« Feb    

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • September 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015

Recent Posts

  • Open Courses: Changing the Higher Education Scene
  • 5 Reasons Why You Need a Passive Income Stream
  • ​What are the Important Gold Loan Eligibility Parameters You Must Be Well-Versed with.
  • How to Find the Best Wealth Creation Opportunity
  • What Causes Inflation?

BL

scorpion removal las vegas

citratextile.com

berasgandrung.co.id/grosir-beras-malang

Tags

5e Business Profit Ahron Levy Columbia Business School All Business Website Att Business Login business Business Consultant Certification Austin Business Insurance Cover Coronavirus Business Letter With Logo Example Business Located Easy Location Business Platform Stocks Business Positions Seattle Business Regulation Legal Services coronavirus Daystarr For Business Dimagi Business Development Toolkit Do Business Schools Accept Entreprenuers Enironmentall Friendly Business Ideas Eric Early Republican Business Owner Essec Business School Dean Essential Business To Remain Open Example Small Business Fall Winter Business Hours Template Fdot Woman Owned Business Certification First Business Women United States First Com Business Fixing A Damaged Reputation Business Florida Business Enforcement Free Small Business Communication Tool Future Business Ideas 2020 Latest Craze In America 2019 Law School Business Entity Outlines Mapping A Business Location Medical Business Trends Economics Mix Business And Personal Money Mlm Nit Small Business Legally New Business Agency Sales Questions Patricia Saiki Women'S Business 1990 Safety Business Proposal Sample Business Plan Entrepreneur School Business Administration Positions S Corp Business Deductions Search Tx Business Llc Sentextsolutions Business Cards Signs For Business On Roads Skype For Business Recording Capacity

Visit Now

Law And Order Criminal Intent

contentplacement.id

dansealsforcongress.com | Magazine 7 by AF themes.