London, Friday, 22 April 2022
US Markets Summary
Investors examined a slew of corporate profits and braced for more aggressive monetary tightening by the Federal Reserve in the coming months as U.S. equities dropped Friday afternoon, ending another week in the red.
The Dow Jones industrial average dropped almost 900 points, posting its largest daily loss since October 2020.
To close at 33,811, the blue-chip index dropped 981 points, or 2.82 percent. The S&P 500 index fell 121 points, or 2.77 percent, to 4,271 points.
The Nasdaq, which is dominated by technology, fell 335 points, or 2.55 percent, to 12,839.
The drop in indexes came as a result of weak first-quarter financial statements from American companies, as well as Federal Reserve officials hinting this week that the central bank will raise rates by 50 basis points at its next meeting on May 4.
The 10-year US Treasury note yield dropped 0.63 percent to 2.899 percent.
The dollar index increased 0.58 percent to 101.16, while the VIX volatility index, or "fear index," increased 24.2 percent to 28.18.
Gold was down 0.9 percent to $1,933 an ounce, while silver was down 1.9 percent to $24.18 an ounce.
Crude oil prices have dropped by more than 2%.
Brent crude, the global standard, was trading at $105.57, down 2.5 percent, while US benchmark West Texas Intermediate (WTI) was trading at $101.11, down 2.6 percent.
European Markets Summary
On mounting fears about central banks tightening despite a weakening global economy, European equities markets concluded the week on a gloomy note, with Germany's DAX losing 2.4 percent and the Stoxx 600 losing 1.7 percent.
At an IMF panel on Thursday, Fed Chairman Powell stated that a half-point interest rate hike could be considered at the next FOMC meeting, signifying a faster tightening cycle.
Following many hawkish comments from ECB officials, most recently Luis de Guindos, the case for rate hikes as soon as July gathered traction in Europe. Meanwhile, with incumbent Macron topping polls ahead of the second round of the French presidential elections on Sunday, caution reigned.
All sectors ended in the red, with technology and luxury stocks leading the way lower. SAP, the German software giant, slumped 1.9 percent after reporting a €300 million revenue impact as a result of its pull-out from Russia. The DAX lost 0.2 percent this week, while the Stoxx 600 lost 0.6 percent.
Bitcoin: −800.70 (1.98%) at $39,682.60
Ethereum: −29.97 (1.00%) at $2,953.75
(Written and edited by: The Decision Maker)