Home » Business » Amazon Slaps, Wall Street Collapses at Opening

Amazon Slaps, Wall Street Collapses at Opening

Jakarta, CNBC Indonesia – The stock market of the United States (US) plunged at the opening of trading Friday (29/4/2022), where Amazon shares became the next victim in the correction trend of technology stocks.

The Dow Jones Industrial Average dropped 380 points (-1.1%) at 08:30 local time (20:30 WIB) and half an hour later it became 298,41 poin (-0,88%) ke 33.617,98. The S&P 500 is down 60,41 poin (-1,41%) ke 4.227,09 and Nasdaq drop 189,36 poin (-1,47%) ke 12.682,17.

The stock market is heading for a monthly correction after investors were hit by various negative sentiments ranging from the tightening policy of the US central bank (Federal Reserve / The Fed), the increase in benchmark interest rates, high inflation, the increase in Covid-19 cases in China and the Ukraine conflict.

The S&P 500 index posted a 6% correction for the month in April, its worst monthly performance since the Covid-19 pandemic hit. The Nasdaq dropped 10%, its worst since March 2020, while the Dow Jones fell 3% in a month.

Tech stocks are currently in the spotlight amid a massive correction ahead of a hike in the US Fed Funds Rate and supply chain disruptions due to the Covid-19 pandemic and the Ukraine-Russia war.

Amazon shares plunged up to 11.8% to be the biggest correction in a decade, after the e-commerce giant reported a net loss and released a weak forecast for the second quarter of 2022.

“The current market performance is triggering a dangerous pattern of transition from a long and painful correction to something worse,” said Michael Shaoul, head of Marketfield Asset Management in a research report quoted by CNBC International.

This week has been the busiest week for the financial performance release season and intense for tech issuers. Apple shares came under pressure after Chief Financial Officer Luca Maestri said supply chain constraints could hamper fiscal Q3-2022 earnings.

Intel shares fell 6% after announcing projected weak financial performance in the second quarter of 2022. Meanwhile, Robinhood shares slumped 1% after reporting a bigger-than-expected loss, lower net profit and a drop in monthly active users.

Investors are still worried about global growth which is predicted to slow down, inflation continues to soar, and the tightening of monetary policy by the US central bank (Federal Reserve / The Fed). The Commerce Department reported that US GDP in the first quarter of 2022 fell 1.4% year-on-year.

Today, the consumer personal spending index (PCE), which describes a measure of inflation and is closely watched by the Fed, rose 5.2% year-on-year. The market will also monitor the consumer sentiment index from the University of Michigan will also be released in the morning local time.

About 50% of companies that are constituents of the S&P 500 index have released their financial results, with 80% of them posting net incomes above expectations, as recorded by FactSet.

CNBC INDONESIA RESEARCH TEAM

[Gambas:Video CNBC]

(ags/ags)


Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.