the stock market recovered from a fall having been on the verge of its first bear market since the start of the pandemic. The S&P 500 finished a 18,6% under the historical maximum which reached the beginning of January. A decline of 20% would have been considered the start of a bear market.
The benchmark index, the heart of many retirement accounts, recovered from a loss of 2,3% to end just green. The S&P 500 finished at 3,901.36, basically unchanged on the day, but down 3% on the week.
The rise in interest rates, high inflation, the war in Ukraine and the slowdown in the Chinese economy have worried investors.
The Dow Jones erased a 600-point drop and was also unchanged at 31,261.90, while the composite index NasdaqTech-rich fell 0.3% to 11,354.62.
The stock slump is “generally signaling slower growth at a minimum,” LBBW’s Karl Haeling said, adding that “a lot of people are talking regarding a recession next year.”
The disappointing forecasts of the big retailers Walmart and Target stirred confidence market this week, adding to evidence that rising prices have begun to hurt the purchasing power of American consumers.
The S&P 500 and the Nasdaq registered their seventh consecutive week of losses, its longest losing streak since the end of the dot-com bubble at the turn of the century. The Dow Jones is on track for its eighth straight weekly decline. the longest since 1932, during the Great Depression. And on a weekly balance, the current losing streak for the New York stocks is the deepest since 2001.
Traders are assuming the US central bank will raise interest rates by 50 basis points in June and July.
The heavy 2022 losses on the back of concerns regarding the resilience of corporate earnings in the face of inflation resurfaced this week. In the TThe course of 2022, the Nasdaq index sinks 29%, the S&P 500, 20%and the Dow Jones Industrials, 15 percent.
Meanwhile, Treasury yields sank, with the yield on the benchmark 10-year note falling to just over 2.8%, and US crude oil prices rose above $112 a barrel.
The S&P 500 posts its seventh consecutive weekly loss, or its longest losing streak since 2001
The latest bout of volatility came on the back of weaker-than-expected earnings results and guidance from some major US retailers, which seemed to confirm fears that companies were having a harder time passing on rising costs to consumers. consumers.
“Unfortunately, there is no safe haven. When we look at the news that came out of consumer discretionary and staples…That shows the struggles that companies have, regardless of their size,” he told Yahoo Finance Eva AdosCOO of ER Shares.
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