US stock indices tumbled strongly during the weekend’s session, ending a volatile week that witnessed surprising results for companies and increasing certainty regarding sharp interest rate increases in the near term, which also pushed them to decline this week.
This was the third consecutive week of losses for the S&P 500 and Nasdaq, while the Dow Jones recorded its fourth consecutive weekly decline.
Broadly speaking, global stocks hit five-week lows; Investors fear that rapid increases in interest rates, in the United States, Britain and the eurozone in the face of rising inflation, will affect economic growth.
On Thursday, US Federal Reserve Chairman Jerome Powell said: “A 50 basis point interest rate increase will be on the table when the bank meets on May 3 and 4, while the European Central is likely to raise interest rates before the end of the year.” year, bank president Christine Lagarde told CNBC on Friday.
Traders ramped up their bets that the European Central Bank will raise the interest rate, currently at 0.50%, by regarding 85 basis points by the end of the year, up from regarding 70 basis points on Thursday.
The focus was also on the second round of France’s presidential election on Sunday; It is possible that President Emmanuel Macron has expanded his lead over his far-right rival Marine Le Pen.
The Dow Jones index fell 1.9% for the week, which is the fourth consecutive weekly decline and the ninth weekly loss, and the “Standard & Poor’s 500” index recorded a weekly loss of 2.8%, recording the third consecutive decline in one week, and the “Nasdaq” index was laggard. this week; Where it lost 3.8%.
“Wall Street” ended Friday’s trading with a sharp decline, and the “Standard & Poor’s 500” index fell 121.68 points, or 2.77%, to 4,271.84 points, and the “Nasdaq” composite index fell 335.09 points, or 2.54%, to 12839.56 points. The Dow Jones Industrial Average fell 973.22 points, or 2.80%, to 33,819.54 points.
European stocks
European shares closed on Friday near their lowest levels in a month following a slew of negative factors ranging from Chinese shutdowns to combat the “Covid” outbreak to concerns regarding rapid interest rate increases slowed global sentiment.
The European “Stoxx 600” index fell 1.8 percent to 453.43 points, its lowest closing level since March 25.
The basic resources sector index, which includes international mining companies such as “Glencore” and “Rio Tinto”, decreased by 3.6%; Metal prices have been hit by shutdowns in China, the largest consumer of metals.
Meanwhile, British retailer B&M’s weak earnings and worse-than-expected retail sales data in March pushed the retail index down 3.7%. The French CAC 40 index closed down 2.0%, affected by broad selling, but rose on a weekly basis on expectations that Macron will win a new term.
