Dow Jones records weekly losing streak not seen since 1932

0
4
EL CEO

May 20, 2022 | 4:10 p.m.

financial world weighed in on a sell-off for the week, leading major indices to close mixed, however the Dow Jones Industrial Average marked a losing streak not seen since 1932.

After two days with falls, the dow jones advanced 0.03%, to 31,261.90 units during the day, however, it obtained a weekly pullback of 2.91%, the deepest since last January 16, in addition to marking its eighth week with losses, a streak not seen since 1932near the height of the Great Depression, according to The Wall Street Journal.

Meanwhile, the S&P 500 rose 0.01% to 3,901.36 units, after briefly falling to a bear marketwith a weekly drop of 3.05%, adding its seventh week to the decline, a period not seen since March 18, 2001.

The Nasdaq Composite fell 0.30%, to 11,354.62 units, linking three days to the downside and with a weekly pullback of 3.82%, marking a seven-week losing streak not seen since March 11, 2001, after the dot-com bubble burst.

Mexican market follows another path

In Mexico the Index of Prices and Quotations (IPC) from Mexican stock exchange (BMV) I know cut off from the foreign market to close with gains, ending the day with a rise of 0.45%, to 51,518.30 points, with a weekly advance of 3.91%.

In this way, the index linked two weeks with increases for the first time since February 27, according to data from invest.com.

The companies that led the gains during the day were Grupo Carso, Televisa, Alfa, Industrias Peñoles and Elektra.

On the other hand, in the foreign market, the Stoxx Europe 600 added 0.7%; while Asian stocks also rose, with the Shanghai Composite advancing 1.6% and the hang up seng from Hong Kong 3%.

While in the market for government bondsThe benchmark 10-year US Treasury bond yield fell to 2.785% on Friday from 2.854% on Thursday.

Do not miss: Cetes, Bonos M and Udibonos are more attractive in the face of rate hikes and stock falls

Wall Street under pressure

The driving force behind the sell-off, investors say, is growing fears about the health of the United States and the global economy.

Money managers spent the first few months of the year worrying that increases in interest rates of the Federal Reserve greatly affected the expensive stocks that had fueled the market’s rally in recent years.

Given this, investors fled from the shares of the technology companiessiphoning off billions of dollars from the funds that follow the nasdaq. Higher interest rates tend to dull the appeal of companies that are counting on generating big profits for years to come.

But this week, the pain spread far beyond the tech sector, alarming many investors. Main retailers reported that their profits were hit by rising costs and supply chain disruptions, triggering a sell-off that led to Goal Y walmart to the worst one-day drop since the Black Monday crash of 1987.

Meanwhile, economists Goldman Sachs They estimate that there is a 35% chance that the US economy will go into recession sometime in the next two years.

Stocks slide

Wall Street continued to sell semiconductor stocks this Friday on recession fears and while Applied Materials reduced its orientation, closing with a loss of 3.9%.

The actions of nvidia Y advanced micro devices they fell 2.5% and 3.3%, respectively.

On the other hand, the actions of Deere fell 14%. after the heavy equipment manufacturer reported a loss of revenue. The actions of Caterpillar they lost more than 4%.

Ross Stores slid 22%, after it posted a drop in sales and said it expects another drop in sales for the current quarter. The retailer, like many other businesses, said its results were hurt by rising transportation and labor costs.

On the other hand, in the raw materials market, oil prices they closed lower, however, marked their fourth weekly advanceas the market continues to be caught between supply and demand problems; in addition to the fact that greater losses were observed in the prices of natural gas.

Also read: Colombian startups want to expand in Mexico and reinforce FDI

LEAVE A REPLY

Please enter your comment!
Please enter your name here