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Wall Street sinks in April and the Nasdaq suffers its worst month since 2008

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Wall Street closed the month of April with large losses in its three main indicators and a 13.3% cumulative drop in the Nasdaq index, which has suffered its worst month since 2008, dragged down by massive sales in the technology sector.

In April, the Dow Jones Industrials lost a cumulative 4.9% and the S&P 500, which represents the broader market in the US and includes many technology companies, fell 8.8%, which means due to its part the worst month for both since 1970.

Investors on the New York stock exchange have dumped their securities en masse for safer assets in the face of a host of concerns, such as rising interest rates and high inflation in the US, the war in Ukraine and the outbreak of covid in China.

Macroeconomic data has cast a gloomy outlook for global growth, with GDP in the US contracting by 1.4% at an annualized rate in the first quarter of the year, raising fears of a more severe recession episode than in 2020.

Macroeconomic data has cast a gloomy picture of global growth

The quarterly results of the most important listed companies in Silicon Valley have also had an influence, which have offered weaker figures than expected and generated a flight from their shareholders, in an apparent puncture after the bonanza associated with the pandemic.

In the monthly computation of the sectors, the communications sector has fallen by more than 13% and the technology sector by 7%, with bleeding figures from companies such as Netflix, which has lost 49% in April, or Amazon, 24%.

The sectors that have resisted have been essential goods, which rose by a cumulative 6%, real estate, almost 4%, and public services, less than 1%.

“Large price swings in both directions have been the norm all month,” said analyst Randy Frederick of Charles Schwab, who warned that volatility remains high in anticipation of the Fed’s monetary policy decision. this week.

Twitter has soared 25% on the stock market this month, while Tesla has lost about 20%
At the corporate level, eyes have focused on Twitter after the billionaire Elon Musk, founder of Tesla, agreed to buy it for about 44,000 million dollars, for which he has sold a part of his shareholding in the electric vehicle company. .

Twitter has soared 25% on the stock market this month, while Tesla has lost close to 20%.

In the public debt market there have been large movements due to expectations that the Fed will raise interest rates in the coming months, with the benchmark 10-year Treasury bond yield increasing by nearly 25%, to brush 2.93%.

As for oil, the Texas barrel has appreciated almost 5% between strong swings due to the effect on demand of the confinements in China and a possible veto by the European Union on Russian oil, which seems increasingly closer.

The strengthening of the dollar against other currencies such as the euro, against which it has reached a maximum not seen in two years, and the yen, at a maximum of the last two decades, has also been important.

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