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Stocks fall on Wall Street, sinking indexes for the week – Press Telegram

By DAMIAN J. TROISE

NEW YORK (AP) – Shares fell sharply on Wall Street trading on Friday afternoon, putting major indices back in the red during the week after several sharp moves both up and down in recent days.

The S&P 500 fell 2% at 12:15 p.m. The Dow Jones Industrial Average fell 462 points, or 1.4%, to 33,455, and the Nasdaq fell 2.1%.

Major indices have been shifting between declines and recoveries over the week as the latest round of corporate earnings hit the market in effect. Investors have been reviewing an especially heavy batch of financial results from large technology companies, industrial companies and retailers.

The volatile week ends a sad month for stocks, as traders worry about the harsh medicine the Federal Reserve is using in its fight against inflation – higher interest rates. This will increase borrowing costs in all areas for people who buy cars, use credit cards and take out mortgages to buy homes. The S&P 500 is heading for a 7.2% loss for April, which would be its worst month since the pandemic began.

Internet retail giant Amazon fell 12.8% after reporting a rare quarterly loss and offering investors a disappointing revenue forecast. Amazon’s weak update comes as Wall Street worries about a possible slowdown in consumer spending along with rising inflation.

Prices for everything from food to gas have been rising as the economy recovers from the pandemic and there has been a major disconnect between increased demand and supply delays. The invasion of Ukraine by Russia has only increased concern about inflation as it causes rising prices for oil, natural gas, wheat and corn.

The Commerce Department reported on Friday that an inflation indicator closely followed by the Federal Reserve rose 6.6% in March compared to a year ago, the 12-month high jump in four decades and further evidence that rising prices are putting pressure on household budgets and household health. the economy.

The latest report on rising US inflation follows a report by the Eurostat statistics agency which shows that inflation reached an all-time high in April of 7.5% for the 19 countries that use the euro.

Bond yields rose after hot readings on inflation. The 10-year Treasury yield rose from 2.85% to 2.90%.

The persistent rise in inflation has led central banks to raise interest rates to mitigate the impact on businesses and consumers.

Much of the anxiety on Wall Street in April focused on how quickly the Fed will raise its benchmark interest rate and whether an aggressive series of hikes will limit economic growth. The Fed chairman has indicated that the central bank may raise short-term interest rates twice as much as usual at the next meetings, starting next week. It has once again raised its rate to one day, the first such increase since 2018, and Wall Street expects several major increases in the coming months.

Investors spent much of April shifting money from large technology companies, whose stock values ​​benefit from low interest rates, to areas considered less risky. The S&P 500 Consumer Commodities sector, which includes many home and personal goods manufacturers, is on track to be the only benchmark sector to make a profit in April. Other sectors of safe play, such as utilities, have held up better than the wider market, while technology and communications stocks are among the biggest losers.

Stocks fall on Wall Street, sinking indexes for the week – Press Telegram Source link Stocks fall on Wall Street, sinking indexes for the week – Press Telegram

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