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The last day of the week, and the first of May, is generally down for the three key indices on the New York Stock Exchange. It comes after the month of April that just passed behind us and became the best in the history of the tech-loaded Nasdaq.
This is what Wall Street’s shutdown looks like.
- The heavy industrial Dow Jones closed with a fall of 2.55 percent.
- The S&P 500 aggregate index closed down 2.81 percent.
- Nasdaq, heavy on technology, closed with a 3.20 percent drop.
Tesla submerged during the day, after Elon Musk began a long tirade on social media Twitter at 5.30pm. At first, he wrote in a message that he believed the course was too high, prompting a lot of angry reactions from fans.
He then followed up on Twitter phrases of the United States national anthem before announcing that “he would sell everything he owns.” Tesla ended the day with a 10.3 percent drop, to $ 701.32. According to the Financial Times, $ 14 billion of Tesla’s market value was removed due to the dispute.
Amazon fell steadily during the day after the company released Thursday night results for the first quarter. Chief Executive Jeff Bezos asked shareholders to “stick around” as they announce that Amazon will spend $ 4 billion on crown-related expenses in the coming quarter. Amazon closed 7.4 percent, at $ 2,286.04.
At the same time, Bezos is called to the carpet of the House of Representatives in the US Congress. USA Because the chamber’s legal committee believes it made a false statement the last time it testified on behalf of the company.
“China will be responsible”
According to CNBC, the markets are nervous after the President of the United States, Donald Trump, hinted earlier this week that he had “seen evidence” that the coronavirus originated in a laboratory in Wuhan, China.
Trump’s financial adviser Larry Kudlow told the television channel that “China will be responsible for the crown virus.”
– There is no doubt about that. How, when, where or why. I’ll leave it to the president, he said.
Friday’s slowdown comes after April became the first month of revival on Wall Street so far in 2020.
In addition, other milestones were reached:
For the Dow Jones and S&P 500, the eleven and 12 percent increase, respectively, was the strongest since 1987 and the best month of April since 1938. For Nasdaq, it was the best month of April and the largest increase in a year. month since 2000.
See opportunities for the new “bear market”
According to an analysis by the Bespoke Investment Group, published by Marketwatch, there are good opportunities for Wall Street to drop to low levels starting in March, when the coronavirus hit the New York Stock Exchange in its entirety.
Analysis shows that the 25 so-called “bear markets” since 1928 have been followed by a lower list than the bottom list in the “bear market” in the S&P 500 60 percent of the time.
A bear market can be explained by a market drop of more than 20 percent.
“After one of the best months in history, it is not very surprising to see people selling now,” said Matt Miskin, investment strategist at John Hancock Investment Management, according to Marketwatch.
– We started the quarterly reporting season with a bang: It was a good start for tech companies, but Thursday was more varied. The market is perfectly priced from the tech giants, and we are now seeing some downsides in the market as a result of perhaps a more realistic view of the results, Miskin adds. (Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our cases using a link, which links directly to our pages. Copying or any other use of all or part of the content may only be made with written permission or as permitted by law. For more terms see here.
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