New York (AP) – Wall Street is looking for further short -term losses after breaking the previous day amid continued high inflation and its potential impacts on company revenues and consumer spending.
The S&P 500 futures and Dow Jones Industrial Average fell 0.9% on Thursday.
Equities in Europe and Asia fell sharply after US markets crashed.
The German DAX was down 1.6% in the afternoon, the Paris CAC 40 by 1.7% and the UK FTSE 100 by 2.1%.
The Dow lost 1100 points, or 3.6%, on Wednesday. The S&P 500 experienced its biggest decline in nearly two years, falling 4%, while the technologically heavy Nasdaq fell 4.7%.
The benchmark index has now fallen more than 18% from its record high at the beginning of the year. This only avoids the 20% decline that the bear market has endured.
“The sentiment in the market is very negative because traders and investors are more worried about the economic collapse and rising inflation,” said Naim Aslam of Avatrade.
Rising interest rates, high inflation, the war in Ukraine and the slowdown in China’s economy have forced investors to reconsider the prices they are willing to pay for a wide range of stocks, from high-tech companies to traditional car manufacturers.
Last Brewery This only happened two years ago, but it will still be the first for investors to start trading phones during the pandemic. Over the years, thanks to extraordinary actions by the Federal Reserve, shares often go in only one direction: upside. Now, the familiar cry of “Buy a well” after every market swings, fears that the well will be cratered.
The Federal Reserve is trying to mitigate the impact of the highest inflation in the past four decades by raising interest rates. Many other central banks follow a similar path. But as the Bank of Japan maintained its policy on low interest rates and the gap between the benchmark interest rates of the world’s largest and third largest economies, the dollar rose against the Japanese yen.
Japan observed a trade deficit in April Although its imports rose 28%. This change reflects the increase in energy spending during the war in Ukraine and the weakening of the yen against the dollar.
In Tokyo, the Nikkei 225 lost 1.9% to 26402.84, while Hong Kong lost 2.5% to 20120.60 in Hong Kong. In South Korea, the Kospi fell 1.3% to 2592.34, while the Australian S & P / ASX 200 fell 1.7% to 7064.50.
The Shanghai Composite Index reversed its previous losses, climbing 0.4% to 3,096.96.
Wednesday, Retail Target lost a quarter of its value after reporting earnings that were lower than analysts ’forecasts. Inflation, particularly in terms of shipping costs, pushed the operating margin for the first quarter to 5.3%. He expects 8% or more.
The company warned that shipping costs would be $ 1 billion this year than estimated just three months ago.
The report came a day after Walmart said its revenues were impacted by high costs. The nation’s largest retailer fell 6.8%, adding to losses on Tuesday.
Target and Walmart have given us anecdotal evidence that inflation is weighing on consumers, who say they are reluctant to buy big tickets and move from domestic to cheaper brands in stores.
Weak relationships have become stubborn causing concern. Rising inflation Closer to a wide range of companies and can even reduce their profits.
Other large retailers also suffered heavy losses.
The data are not completely consistent. On Tuesday, the market rejoiced at an encouraging report from the Commerce Department that showed retail sales rose in April. This is due to higher sales of cars, electronics and higher costs in restaurants.
Investors fear that the Fed could trigger a recession if it raises interest rates too high or too quickly. Concerns over global growth continue Russia’s invasion of Ukraine Puts more pressure on oil and food prices Stops China Stopping COVID-19 cases exacerbates supply chain problems.
The benchmark U.S. crude price on the New York Mercantile Exchange dropped $ 1.27 to $ 108.32 per barrel. It dropped to $ 2.81 from $ 109.59 on Wednesday.
Brent oil, the base price for international trade, fell 71 cents to $ 108.40 per barrel.
The dollar fell from 128.20 yen to 127.92 Japanese yen by the end of Wednesday. The euro strengthened from $ 1.0464 to $ 1.0514.
Source: Huffpost
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