Weekly earnings for “Dow Jones” and “S&P” and “Nasdaq” decrease

The S&P and Nasdaq ended the week down 1.55% and 3.11% respectively. Shares fell on Friday, ending a volatile week of trading, one day after hitting an all-time high as investors digested inflation expectations.

On Friday, the Dow Jones Index fell 403.89 points, or 1.34%, to end the day at 2,9634.83 points. However, the index rose 1.15% over the week. On the other hand, “Standard & Poor’s” fell 2.37% to 3583.07 and achieved a seventh negative close in eight days. The Nasdaq Composite Index fell 3.08%, ending the day at 10,321.39, impacted by losses from “Tesla” and “Lucid Motors”, which fell 7.55% and 8.61% respectively.

Shares dipped to session lows after a University of Michigan consumer survey showed inflation expectations were rising, a sentiment the Federal Reserve is likely to follow closely. The tech-rich Nasdaq index led the downside as growing companies are more sensitive to higher interest rates.

Meanwhile, bond yields have soared, with the 10-year US Treasury bond rate rising to 4% for the second time in two days as investors react to rising inflation expectations.

Markets have been down all week as investors have assessed the new inflation data that will inform the Fed as it continues to raise interest rates to cool down price hikes. Shares witnessed a major trend reversal on Thursday as the Dow Jones finished the session 827 points higher after falling more than 500 points to the day’s low, the S&P 500 climbed 2.6% to break the six-day losing streak and the Nasdaq The composite jumped 2.2%.

Thursday also saw the fifth largest intraday reversal from the lowest in S&P history and the fourth largest reversal for the Nasdaq, according to SentimenTrader.

European equities

European equities closed trading higher on Friday at the end of trading week, supported by an initial payment after the UK government backed off on tax cuts, but the impact of this payment waned in light of the continued uncertainty surrounding its financial position.

The European Stoxx 600 Index closed 0.6% higher for the second consecutive session, but diverged significantly from the high levels recorded in the session shortly after British Prime Minister Liz Terrace announced the cancellation of certain provisions. of the government’s financial program.

Terrace fired Finance Minister Kwasi Quarting and said Britain would push ahead with plans to raise corporate taxes.

The pound versus the dollar fell 1.2%, close to the session lows, while UK 2-year bond yields fell in recent trading after reversing gains prior to TRACE’s announcement. The UK’s FTSE 100 major equities index also fell from its highest levels during the session, closing up 0.1%.

The pan-European Stoxx 600 has fallen 19.8% so far this year, with markets worried about massive interest rate hikes around the world pushing the economy to the brink of recession. An energy crisis exacerbated by the Russian-Ukrainian conflict has also heightened concerns about an economic slowdown in Europe. However, Friday’s gains helped the Stoxx Index write off some of the losses it suffered in the first three days of the week.

Most of the sectors listed on the STOXX 600 grew, driven by real estate and utilities equities. On the corporate front, Temenos tumbled 19% after the Swiss banking software group cut its target profit estimates for 2022.