Wall Street slides to largest daily losses since 2020

  • Amazon tumbles after results and outlook fall short
  • Apple slips after reporting supply issues
  • Monthly inflation has increased the most since 2005
  • End of indices: S&P 500 -3.63%, Nasdaq -4.17%, Dow -2.77%

April 29 (Reuters) – Wall Street slid to its largest daily losses since 2020 on Friday as Amazon slumped following a dismal quarterly report and the biggest rise in monthly inflation since 2005 spooked investors already worried about rising interest rates.

Amazon.co.uk Inc (AMZN.O) fell 14.05% in its biggest one-day decline since 2006, leaving the widely held stock near its lowest level in two years. Late Thursday, the e-commerce giant delivered a disappointing quarter and outlook, overwhelmed by rising costs.

Apple Inc (AAPL.O), the world’s most valuable company, fell 3.66% after its disappointing outlook eclipsed record quarterly earnings and sales.

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All 11 S&P 500 sector indices fell, led by a 5.9% drop in consumer discretionary (.SPLRCD) and a 4.9% drop in real estate (.SPLRCR).

The S&P 500 posted its largest one-day decline since June 2020. The Nasdaq’s decline was its largest since September 2020.

Disappointing earnings results and concerns about the Federal Reserve’s aggressive monetary policy tightening hurt megacap technology and growth stocks this month.

The Fed is due to meet next week, with traders betting on a 50 basis point rate hike to combat soaring inflation.

Ahead of the weekend and the Fed meeting next week, “people are cleaning decks. Disappointing guidance from Apple and Amazon and a few other companies set the stage yesterday for today to be weak and it accelerated at the end of the day,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Va.

The Nasdaq (.IXIC) lost around 13% in April, its worst monthly performance since the 2008 global financial crisis.

The S&P 500 has fallen 13% so far in 2022, its biggest four-month decline since 1939.

Adding to fears on Wall Street, data showed the personal consumption expenditure price index – the Fed’s preferred measure of inflation – jumped 0.9% in March after climbing 0.5 % in February. Read more

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., April 4, 2022. REUTERS/Brendan McDermid/File Photo

Signs of aggressive monetary policy tightening, war in Ukraine and COVID lockdowns in China fueled fears of an economic slowdown. Thursday’s data showed the US economy unexpectedly contracted in the first quarter. Read more

The S&P 500 fell 3.63% to end the session at 4,131.93 points.

The Nasdaq fell 4.17% to 12,334.64 points, while the Dow Jones Industrial Average fell 2.77% to 32,977.21 points.

For the week, the S&P 500 lost 3.3%, the Nasdaq lost 3.9% and the Dow fell 2.5%.

The most active trades in the S&P 500

The S&P 500 has gained or lost 2% or more in one day about 33 times so far in 2022, compared to 24 such days in 2021.

Exxon Mobil Corp (XOM.N) fell 2.24% after suffering a $3.4 billion write-down due to its exit from Russia. Chevron Corp (CVX.N) fell 3.16% after its first quarter profit was disappointing. Read more

Overall, the first quarter earnings season has been better than expected so far. Nearly half of the S&P 500 companies have released their report through Thursday and 81% of them beat Wall Street expectations. Typically, only 66% exceeded estimates, according to Refinitiv data.

Falling issues outnumbered rising ones on the NYSE by a ratio of 3.91 to 1; on the Nasdaq, a ratio of 2.85 to 1 favored the decliners.

The S&P 500 posted 2 new 52-week highs and 47 new lows; the Nasdaq Composite recorded 13 new highs and 385 new lows.

Volume on U.S. exchanges was 12.4 billion shares, compared to an average of 11.8 billion over the past 20 trading days.

(This story corrects 10th paragraph to show S&P 500 year-to-date decline comparable to 1939, not 1932)

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Reporting by Bansari Mayur Kamdar and Devik Jain in Bengaluru and Noel Randewich in Oakland, California; Editing by Arun Koyyur, Aditya Soni and David Gregorio

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