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After the Nasdaq index’s biggest decline in almost two years on Thursday, it pointed further down in pre-trading on Wall Street on Friday. Barely two hours after opening on Friday, the decline had turned to a positive, before it fell again.
All three main indices ended the stock market week with a decline.
- Nasdaq Composite: – 1.4 percent
- Dow Jones: -0.3 percent
- S&P 500: – 0.57 percent
The Nasdaq Composite reached its peak on Wednesday afternoon. Since then, the tech index has fallen by more than six percent, and so far this year, the tech stock market has fallen 22 percent. The broad index S&P 500 has fallen 13 percent so far this year, while industry-heavy Dow Jones has fallen 9.6 percent, writes Wall Street Journal.
Strategist Danny Kirsch in the Wall Street brokerage house Piper Sandler tells the newspaper that many investors are now selling “anything” to make a profit, and that this creates a great selling pressure in the stock market. The usual analyzes do not stand up at the moment.
– It is a “go to cash” mentality. Nothing works, he says about the market.
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With the exception of Apple, which has had a roller coaster of a day, the big tech stocks also ended in the red. For a while, Apple shares were down 1.4 percent, but then turned up 1.7 percent before falling again. When the stock exchange closed, the share had risen 0.4 percent.
- Apple: 0.4 percent
- Microsoft: -0.9 percent
- Alphabet C: -0.6 percent
- Amazon:- 1.4 prosent
- Tesla: – 0.8 percent
- Meta: – 1.3 percent
Wage growth worries
On Friday, new figures for employment and wage growth in the United States were published.
In April, 428,000 people got new jobs, clearly more than expected. At the same time, wage growth was 5.5 per cent, ie over five per cent for the fourth month in a row.
Many interpret wage growth as a sign of further pressure on inflation, which is now the market’s and economists’ main concern.
The US Federal Reserve has long interpreted rising inflation as a temporary phenomenon, and is now being criticized for being too late in taking action. The goal for the central bank is to try to calm inflation, which is at historically very high levels.
Rising prices in the US rose to 8.5 per cent in March on a 12-month basis, the fastest increase in 40 years. Next week, April figures for inflation in the US will be published, and will be followed with an arguing eye.
On Wednesday, the interest rate committee in the central bank decided to raise the key interest rate by 0.5 points to 0.75 – 1.0 per cent. At the same time, central bank governor Jerome Powell signaled that it is not relevant to raise the interest rate by 0.75 points in one go ahead. At the same time, he signaled several interest rate hikes of 0.5 points.
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After a warm reception of the interest rate decision and signals on Wednesday with a sharp rise on Wall Street, Thursday ended with the largest decline in almost two years on the Nasdaq:
- Nasdaq Composite -4.99 percent
- Dow Jones -3.12 percent
- S&P 500 -3.56 percent
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