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market reviews. The New York Stock Exchange closed sharply lower on Thursday, affected by the monetary tightening decisions of the European Central Bank and also due to the fear of the announcement on Friday that US inflation will continue in May.
To re-consult market news
Stock market indices at close
in Toronto, a S&P / TSX It decreased 228.54 points (-1.10%) to 20563.89 points.
in New York, a S & P500 It fell 97.95 points (-2.38%) to 4017.82 points.
The Nasdaq It fell 332.04 points (-2.75%) to 11,754.23 points.
The daw It closed down 638.11 points (-1.94%) at 32272.79 points.
The almost It closed down $0.0093 (-1.1667%) at $0.7873.
The oil It closed down $0.95 (-0.78%) at $121.16.
He went It fell $6.10 (-0.33%) to $1,850.40.
The Bitcoin It closed down $75.69 (-0.25%) at $3,016.32.
10-year Treasury yields, which move inversely to their price, remained narrow, above 3.04%.
“Primarily, we are seeing an introduction to inflation data for Friday which is really making the market nervous,” said Peter Cardillo of Spartan Capital Securities.
Analysts expect the US CPI to continue rising last month by 0.7% (after +0.3% in March) and 8.3% over twelve months.
“This report could have implications for the US Federal Reserve’s decision next week,” Wells Fargo analysts expressed concern as the Fed holds its monetary meeting next Tuesday and Wednesday, and is expected to raise key interest rates again by 50 basis points, according to market outlook.
“Another nerve factor comes from the European Central Bank (ECB) planning to raise interest rates by a quarter point in July, halt its asset purchases and possibly raise another 50 basis points in September,” said Peter Cardillo.
In addition, the ECB’s new economic forecasts show that inflation will rise to 6.8% this year while Eurozone GDP is likely to grow only 2.8% in 2022, a stagflation-like curve profile.
“In short, the market is focused on central banks’ fight against inflation,” concluded analyst Spartan Capital. Concern echoed by experts in Schwab: “The continued rise in prices and the decision of central banks around the world to tighten their monetary policy is fueling fears of recession.”
Wall Street indices, which had started a bit in the red, faltered gradually during the session before accelerating their decline at the close, and these movements were amplified by lower trading volume.
All S&P sectors fell in the red, from telecom services (-2.75%) to consumer products (-1.50%) to real estate (-2.29%) and banking (-2.61%).
In the market, the big names in technology, called growth stocks sensitive to rising rates, fell sharply Apple (AAPL) (-3.60%), Amazon (AMZN) (-4.15%) or Netflix (NFLX) (-4.96%).
Microprocessor manufacturers, who had seen a rally the day before, largely lost ground AMD (AMD) (-3%) or Nvidia (NVDA) (-3.22%).
supermarket chain Target (TGT)which sounded the alarm this week regarding consumer demand, fell further (-1.37%) despite announcing an increase in dividends.
five below (five)the discount chain, also lost 1.37% after a sharp decline in its full-year sales and earnings expectations.
Lab address Novafax (Nevax), whose US health authorities recommended giving the green light for a coronavirus vaccine earlier this week, fell 17.22% to $41.48. And the Health Food and Drug Authority said, Thursday, that the decision was postponed to examine changes in the manufacturing process.
Tesla It fell 0.89% late in the session to $719.12, after rising nearly 4% on the day.
Skillsoft (Skills)the company that practices digital training, collapsed 19.24% as a drop in its quarterly sales disappointed Wall Street.
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