Wall Street extends falls and opens with losses this Thursday

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May 19, 2022 | 9:23 a.m.

I gave themWall Street Indices They trade lower this Thursday, which deepens the loss of the stock markets due to growing concerns about a economic slowdown.

At 8:35 am (Mexico City time), the S&P 500 opened its day with a loss of 0.36% to start with 3,909.41 units, in turn the Dow Jones Industrial Average it fell 0.60%, to start with 31,300.63 units.

Meanwhile he Nasdaq Composite It fell 0.6% to stand at 11,411.71 units.

In Mexico, the Price and Quotation Index (IPC) of the Mexican stock exchange (BMV) began the day with a loss of 0.45% to settle at 50,168.28 points, according to invest.com

European and Asian stocks also fall

International stocks fell, following the US sell-off. The Stoxx Europe 600 lost 1.7%, led lower by shares in financial services and food and beverage companies.

In Asia, the index hang up seng Hong Kong fell 2.5%, as shares of Tencent fell 6.5% after the video game giant reported its worst ever quarterly profit drop.

In turn, the index ITUC 300 of the largest stocks listed in Shanghai and Shenzhen rose 0.2%; while the index Nikkei 225 Japan’s fell 1.9% and South Korea’s Kospi Composite fell 1.3%.

Among individual European stocks, Credit Suisse Group it lost 2.6% after Fitch Ratings downgraded the bank’s credit rating to BBB+. Swiss private bank Julius Baer Gruppe fell 6.7% after saying its assets under management fell in the first four months of the year.

It may interest you: S&P 500 and Dow Jones mark their deepest drop since June 2020

Inflation and economic slowdown impact the market

The earnings reports of some of the retailers largest in the United States in recent days added to concerns that the rate of inflation highest in four decades is catching up with American consumers and pushing the economy toward a recession.

Meanwhile, the crisis in Ukraine adds to inflationary pressures leading the Fed to embark on a series of interest rate hikes and reduce its bond holdings.

In addition, the closures COVID-19 in China have led to a sharp slowdown in the world’s second-largest economy.

The last time the S&P 500 fell into a bear market was during the pandemic panic in March 2020. It was short-lived and the market quickly launched into a two-year rally that peaked on January 3 this year.

The Nasdaq Composite entered a bear market in February, dragged down by tech stocks. The Dow Jones Industrial Average, which is more inclined to old-line industrials and bank stocks, has performed less poorly.

Walmart and Target extend losses

Walmart and Target said this week that higher costs hurt sales. earnings in the last quarterwhich caused a massive sale of its shares that spread throughout the market.

This morning, the Walmart stock started with losses 1.51% to start at $120.58 while Goal also began its day with losses of 4.23% to open with a price of 154.78 dollars.

Read more: Warren Buffett, Michael Burry and other Wall Street figures reveal their investments as of 1Q22

While in the raw materials market, crude oil prices continue to fall this Thursday largely on suspicion that China is trying to replenish its strategic crude reserves with cheap Russian oil.

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