Wall Street stocks fell further on Monday as new data from China raised new concerns about the outlook for the global economy for investors who are already wary of high inflation, rising interest rates and continued supply chain turmoil. bottom.
The S & P 500 fell 1.7% in the early stages of trading, dropping the index by nearly 14% in addition to the five-week fall until Friday.
China’s exports slowed sharply in April. This is due to the continued blockade of China. Playing millions of workers.. China’s steel exports, a barometer of global growth, are unlikely to improve significantly in May, according to analysts at research firm S & P Global.
The Wall Street recession followed a sharp decline in the global market. The Stocks Europe 600 fell 1.8%, while the Hang Seng Index in Hong Kong fell 3.8%.
Oil prices have fallen. The global benchmark Brent crude fell about 2.6% to $ 109.43 a barrel, while the US benchmark West Texas Intermediate fell 2.8% to about $ 106.65.
Stocks have been hit in the past few weeks as investors fight higher interest rates and further turmoil in the supply chain that the Federal Reserve began raising from near zero in March. The S & P 500 is exiting its fifth straight week of decline, the longest consecutive loss since June 2011.
On Friday, the latest data on employment in the United States raised concerns about how the Fed will pursue monetary tightening policies. Wall Street was volatile all week long, the index fluctuated between sharp rises and falls, and government bond yields reached levels above 3%.
On Monday, bond yields, which substitute for investor expectations regarding interest rates, remained largely unchanged. Yields on 10-year government bonds remained at 3.1%.
In 2021, the S & P 500 rose 26.9% and there seems to be no bad news that could stop the US stock market. Moreover, given the uncertainties about the coronavirus, the deal was very modest.
However, the volatility and losses that were closely associated with the recession are back.
In 2021, the daily increase / decrease in the index was over 2.5%, January 27Meme stocks like GameStop and AMC Entertainment soar in speculative frenzy, Federal Reserve said The resurrected coronavirus was focused on economic recovery.
Already this year in 7 days, there was a profit or loss of at least 2.5%. This is about 1 day every 12 trading days. All of these major daily changes occurred in March, April and May.
A series of big gains and losses is more typical of a recession and the period that follows. Before the pandemic caused a turmoil in the stock market in 2020, the last major change was in 2007-11 between the financial crisis and its recovery. Before that, the dot-com boom and bust, and the September 11th attack brought volatility.
Other than these major events, it’s common to make some major changes each year. There have been years when there hasn’t been such a big move: 10 in the last 30 years.
