US stocks ushered in the last trading day of April on Friday (29th), but closed in brutal fashion.Dow JonesCrashing more than 900 points,that fingerIt collapsed by more than 4%, and the S&P plunged 3.63%.that fingerIt was also the worst April since 2000. Tesla (TSLA-US) Chief Executive Elon Musk tweeted that he was advising investors to buy stocks of companies with products and services they believe in and sell when those products and services deteriorate .
U.S. stocks suffered headwinds in April, including the Federal Reserve’s tightening of monetary policy, continued soaring inflation, the raging epidemic in China and the implementation of strict anti-epidemic policies, and the ongoing conflict between Russia and Ukraine.Dow Jonesfell 4.9% for the month,that fingerThe S&P 500 fell 8.8%, down 13.3%.
With U.S. stocksavalanche, Investors are worried, and more fans ask Musk what to do. Musk responded on Twitter on Sunday, saying he advised investors to “buy stocks in a few companies that make products and services you believe in and when you think their products and services are getting worse. Just sell. Don’t panic when the market goes down. It will help you a lot in the long run.”
The gloomy economic outlook has investors sidelining solid earnings and strong consumer data, casting doubt on the sustainability of corporate earnings, a view that last week’s poor forecasts from Intel, Amazon and Apple appeared to confirm.
Katy Kaminski, chief research strategist at AlphaSimplex, said bulls are starting to give up support for a rally in risk assets because of the Fed’s tightening policy. This is indeed a long-term and short-term issue. In the long run, the pressure to raise interest rates is a bigger problem. Although there are some good earnings reports, the long-term issues remain unresolved.
Anastasia Amoroso, chief investment strategist at iCapital, believes that there is a big question mark regarding corporate earnings, and another force so dramatically different is the Federal Reserve, which has been a huge tailwind for the stock market but is now capping stock gains.
