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Photo: Michael Nagle / Bloomberg |
Major US indices declined significantly on Thursday, the last day of April, as grim new data on the US economy prompted investors to curb some gains. However, the market ended its best month in decades, reports CNBC.
The blue chip benchmark Dow Jones Industrial Average canceled 288.14 points of its value and reached a level of 24 345.72 points. The wide meter S&P 500 Eliminated 0.9% at 2912.43 points. The technological indicator Nasdaq compound it fell 0.3% to 8889.55 points.
United States Department of Labor reported that another 3.84 million Americans applied for unemployment benefits last week, totaling more than 30 million in the past six weeks. Consumer spending also contracted by 7.5% year-over-year.
The sharp rise in jobless claims and the collapse of consumer spending come at a time when businesses are forced to close doors and consumers stay home due to a coronary pandemic.
The indexes were under pressure and because Decision of the European Central Bank (ECB) refrain from expanding your extraordinary asset buyback program.
Bank records experienced the biggest decline on Wall Street. Share price Bank of America fell by almost 3%, the stock of Citigroup fell 3.4% and those of JPMorgan Chase – by 2.2%.
Despite Thursday’s declines, the top US indexes posted their best monthly performance in decades.
The S&P 500 recorded its third-largest monthly increase since World War II, growing 12.7% in April. It is also its biggest one-month jump since 1987. The Dow posted its fourth largest monthly increase after the war with a jump of 11.1%. This is also the best month for the Dow in 33 years. The Nasdaq advanced 15.5% in April and registered its highest monthly growth since June 2000.
“Investors are currently subject to tragic evening news and worsening economic performance, but nevertheless the markets have recently been shaken and have had a strong return,” said Scott Knapp, chief marketing strategist at CUNA Mutual Group. “The markets are now compiling real data that reflects the reality of the pandemic and extrapolates it for the coming period,” he added.
“The actual data is more reliable than the expectations described by the media and forecasting models,” says Knapp.
This month’s strong growth is fueled by hope for a cure for the coronavirus. Gilead Sciences announced Wednesday that a study by the National Institute of Allergy and Infectious Diseases has reached its original end point.
But even with the optimistic recovery scenario, “we still expect real repression in sectors of the economy that have entered the crisis with a poor supply and demand ratio or that will probably report a severe interruption in that ratio (unfortunately, a proportion significant commercial property falls into both categories), “says Michael Shaul, President and CEO, Marketfield Asset Management.
Big tech companies didn’t snap into negative market trend on Thursday after Facebook has announced promising earnings data despite the global coronary pandemic.
The company’s stock price rose more than 5% after announcing that its advertising sales revenue had stabilized in the first three weeks of April after a “significant decline”. The social network also achieved first quarter earnings per share of $ 1.71 and revenue of $ 17.74 billion.
Amazon and Netflix added at least 1.9% to their value, and values of Apple increased by 2.2%. Amazon and Apple should announce their results once the stock market has ended.
In the bond markets performance in 10 year olds and in 30-year US Treasury securities increases to 0.642% and 1,291% respectively.
Currency markets the dollar index, which measures the strength of the USD against a basket of six major currencies, amortizes 0.54% of its value to 99.02 points. The euro rises 0.72% to $ 1,095 The pound it rose 1.03% to 1,259%. Straight the yen United States money rose 0.49% to 107.22 yen.
In the commodity markets, the price of oil has risen amid signs that the United States’ crude oil surplus is not increasing as fast as many feared. This brought a positive end to one of the most volatile months in the history of the oil trade.
On Thursday, futures at the international benchmark Brent June shipping rose $ 2.73 to $ 25.27 a barrel. US light crude contracts WTI June shipping rose $ 3.78 to $ 18.84 per barrel.
Brent is on track to post a 12% rise in April after falling more than 65% in the past three months. At the same time, WTI points to the fourth consecutive monthly decrease of 12% in April, bringing the total decrease from the beginning of the year to 70%.
US futures USA In gold They fell 1.1% to $ 1694.20 an ounce after investors closed their long positions. During the month, the precious metal increased more than 7% and recorded its best monthly performance since August last year.
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