Monday, June 27, 2022

Dow falls over 400 points as markets head for week’s losses

The Dow fell more than 400 points on Friday as shares headed for another week of declines after a massive drop two days earlier.

The S&P 500 fell 0.7% and is on track for a seventh consecutive weekly decline after coming close to entering a bear market this week. The Dow Jones Industrial Average fell 1.3% to 30,848 and the Nasdaq fell 2.3%.

All three are leading to drops of 3% or more for the week.

Technology stocks fell widely and the market was weighed down. Applied Materials, which produces chipmaking equipment, fell 5.1%. The tech sector has been particularly choppy and has prompted several major swings in the market throughout the week. For many companies in this sector, higher stock prices give more leverage in pulling the broader market higher or lower.

Bond yields fell. The yield on the 10-year Treasury fell to 2.81% from 2.85% late Thursday.

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The stock market is mired in a downturn amid concerns over how inflation is squeezing businesses and consumers.
Reuters

The stock market is mired in a downturn amid concerns over how inflation is squeezing businesses and consumers. Investors are also concerned about the Federal Reserve’s plan to aggressively raise interest rates and whether this will help offset the effects of inflation or slow growth too much and send the economy into recession.

Russia’s invasion of Ukraine has raised concerns about inflation, with prices rising for energy and some key food items. China, the world’s second-largest economy, was hit by fresh lockdowns in major cities due to COVID-19 cases, but a surprise interest rate cut by the Chinese government at least temporarily eased some concern Is.

Markets in Asia and Europe posted solid gains.

New York Stock Exchange traders
Investors are also concerned about the Federal Reserve’s plan to aggressively raise interest rates.
Reuters

Wall Street is digesting earnings from retailers this week. This area is a major focus as investors try to measure how much inflation is hurting a company’s operations and whether higher prices for everything from food to clothing are prompting consumers to reduce their spending. .

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Retail giants Target and Walmart both warned about inflation cuts in finance this week. Discount retailer Ross Stores posted a 22.2% drop on Friday after cutting its profit forecast and citing rising inflation as a factor.

Several retailers were rewarded for the encouraging results. UGG footwear maker Deckers Outdoor gained 13.1% and Foot Locker was up 1.7%.

Investors continue to watch for signs of the Fed raising further interest rates to calm inflation at a four-decade high. Fed Chairman Jerome Powell said this week the US central bank could take more aggressive action if price pressures fail to ease.

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Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
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