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Stock markets fell sharply in the May 1 session. During the holidays, almost all financial markets remained closed, with the exception of the Anglo-Saxon and Japanese markets. Unfortunately, the session was largely negative. In Europe, the London Stock Exchange, the only open one, lost 2.3%. In New York, the S & P500 index (US500) fell 2.8%. The same drop that the Japanese Nikkei 225 index suffered.
What is happening on the stock exchanges? Was it an unfortunate session or the start of a new bearish phase? What to expect next week?
Stock markets fell sharply in the May 1 session
The declines that occurred in the May 1 session are a bit troubling, especially when it comes to the US stock market. The fall on Friday is followed by the fall, although less pronounced, on Thursday. For the US S & P500 index, the two consecutive declines occur after six positive sessions. Therefore, the recession could fall into the category of profit taking.
Data on the US GDP USA They certainly influenced the two days of decline, which fell 4.8% in the first quarter of the year. On Wednesday, when the negative value was published, the markets had celebrated with a jump of 3%, in an unexpected and apparently inexplicable way. These two negative sessions could be a reflection of a deeper analysis by the operators.
Crucial week
The first two sessions of next week will be crucial to understand where Wall Street will go and, therefore, where the stock markets of the Old Continent will go. Because at this stage, the American stock market has a great influence on the European ones.
It is curious to observe a particular aspect of the S & P500 table. The three sessions on April 29 and 30 and May 1 of the United States Index are graphically identical to those on April 17, 20 and 21. The first was a bullish session and the other two on the downside. But then prices started to rise again, going from a low of 2,727 points to a high of 2,954. For history to repeat itself, Monday’s S&P500 prices must close more than 2,870 points. Closings below 2830 will only weaken the picture and worsen market sentiment.
For the Italian stock exchange, next week will be crucial again. The fact of not closing weekly beyond the 18 thousand point threshold has, for the time being, curbed the ambitions to increase. Next week we will see if the appointment has only been postponed to the next eighth or if it has been canceled.
