Wall Street Struggling to Find Momentum on First Trading Day of May.
London, Monday, 2 May 2022
On Monday, the first trading day of May, US stock futures tracking the broader market were almost flat as investors grappled with the shocks of rapid tightening, which might lead to a recession, and a prolonged war in Ukraine, which is fuelling inflation.
Last week ended with poor guidance from tech heavyweights Amazon and Apple, while a high inflation reading highlighted the hard macro situation.
The core personal consumption expenditures price index, the Fed's favoured inflation gauge, increased 5.2 percent from a year ago. Investors are now anticipating the Federal Reserve's monetary policy decision on Wednesday, betting on the first of many 50 basis point interest rate hikes.
The Dow and S&P 500 had their worst month since the pandemic began in March 2020, falling 4.9 percent and 8.8 percent, respectively, in April.
The Nasdaq Composite Index, which is heavily weighted toward technology, fell 13.3 percent in April, its worst monthly performance since October 2008.
(Written and edited by: The Decision Maker)