The Dow Jones concluded Monday with marginal gains, although it was found to be gaining almost 250 points at the high of the day, while the wider S&P 500 did not manage to hold the positive sign until the close and today worries about the global outlook prevailed. growth, in the aftermath of the weak macro announced earlier in China and the US.
Concerns about the prospects for growth in an environment of increasingly high interest rates have led to a free fall in US market indices in recent weeks. The Dow Jones industrial average lost 2.1% last week, while the broader S&P 500 fell 2.4% and the tech Nasdaq fell 2.8%. The S&P 500 completed six consecutive weeks of losses, marking its worst run since June 2011, while the Nasdaq fell for a sixth straight week, its worst run since November 2012.
The data released today in the US and China confirmed the concerns of investors that the two largest economies in the world are facing significant challenges. The data showed a decline in manufacturing activity in New York State and a decline in industrial activity and retail sales in China.
In the US, the Federal Reserve’s aggressive tightening of monetary policy poses additional risks to the economy, which is facing serious problems in global supply chains and global shocks caused by Russia’s invasion of Ukraine.
Indicators – Statistics
On the board, the Dow Jones gained 26.76 points or 0.08% at 32,223.42 points, while the broader S&P 500 fell 15.88 points or -0.39% to 4,008.01 points. The technology Nasdaq lost 142.21 points or -1.20% to 11,662.79 points.
Of the 30 stocks that make up the Dow Jones industrial average, 17 closed with a positive sign and 13 with a negative. The biggest gainers were Chevron with gains of $ 5.14 or 3.06% at $ 173.01, followed by Merck & Co with gains of 2.11% to $ 92.32 and Verizon Communications at 49 , $ 04 with an increase of 1.78%.
On the other hand, the three stocks with the biggest losses were Boeing (-2.48%), Walt Disney (-2.00%) and Salesforce (-1.67%).
At the end of the day, the New York Fed’s Empire State Index for the state of manufacturing activity fell 36.2 points to -11.6 in May, refuting analysts’ estimates that expected a softer fall to 16.5. Measurements below zero show a deterioration in business conditions.
In China, data released today showed that factory activity and retail sales plunged in April amid lockdowns to curb Covid-19.
In particular, retail sales decreased by 11.1% compared to the previous year. This is the biggest drop since March 2020. At the same time, factory production fell 2.9% compared to the previous year, refuting expectations for a rise and recording the biggest drop since February 2020.
From the “front” of corporate results, large retail chains will be in the spotlight this week as Walmart Inc. announces its quarterly statements on Tuesday. and Home Depot Inc. to be followed by Target Corp. and Lowe’s Cos.
Source: Capital
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
