London, Friday, 29 April 2022
As investors digested poor results from Amazon and Apple, the Dow dropped almost 100 points at the opening bell on Friday, while the S&P 500 and Nasdaq lagged by sliding 0.7 percent and 0.8 percent, respectively.
Amazon's stock dropped more than 10% after the company reported a surprising loss due to its investment in Rivian and issued dismal revenue expectations for Q2 2022.
Apple's stock was also down after CFO Luca Maestri said supply chain issues could hurt fiscal third-quarter revenue. High-growth equities have fallen the most, as the potential of increasing interest rates threatens to devalue tech companies' valuations.
Markets were recalibrating the likelihood of a 50 basis point interest rate hike from the Fed in May as the central bank tries to rein in spiralling inflation.
As a result, the Nasdaq and S&P 500, which are heavily weighted in technology, were on track for their worst month since March 2020. The Dow Jones Industrial Average is likewise expected to end April on a low note.
(Written and edited by: The Decision Maker)