Stocks decrease as the April sell-off keeps on going, and global slowdown fears loom

Stocks decrease as the April sell off keeps on going

April 26, 2022: -On Monday, U.S. stocks decrease, continuing an April market sell-off that has pushed the Dow Jones Industrial Average lower for four straight weeks.

Fear regarding a global economic slowdown loomed as Asian stock markets cratered on Monday between concerns regarding Covid case spikes in China. Oil prices are declining, and yields retreated to the fears.

Wall Street is bracing for a stacked week of earnings, which includes reports from major technology companies such as Amazon and Apple.

The Dow decreased by 250 points or 0.8%. The S&P 500 retreats by 1%. The Nasdaq Composite is lost 0.8%.

“Stocks are kicking off the week deeply in the red as all the anxiety and negativity from Thurs/Fri carried more than the weekend,” wrote Adam Crisafulli of Vital Knowledge to clients. “The dramatic shift in tightening expectations last week remains a huge overhang, but China is quickly rising to the top of market fears as COVID shutdown concerns spread to Beijing.”

After a late March comeback, stocks returned to their losing ways in April. On Friday, the blue-chip average is coming off its worst one-day performance since October 2020, dropping over 900 points and marking the Dow’s fourth straight weekly loss. The S&P 500 and the Nasdaq are fresh off three consecutive losing weeks for the week.

The Nasdaq Composite is decreased 10% for the month, while the S&P 500 and Dow are off by almost 6% and 3%, respectively. The S&P 500 is back in correction territory, down 12% from its high. The Nasdaq is off by over 21% from its record.

Almost 160 companies in the S&P 500 are expected to report earnings this week. All the eyes will be on reports from mega-cap tech names, including Amazon, Apple, Google-parent Alphabet, Meta Platforms, and Microsoft.

“This week may easily be a fork in the road of equities. We have nearly a third of the S&P 500 and half of the Dow Jones set to report. Bottom-up drivers will confirm or reject what the challenging macro backdrop has given us over the last three weeks,” MKM’s JC O’Hara said in a note.

Coca-Cola shares increase about 2% after reporting better-than-expected quarterly earnings before the bell on Monday.

Investors are also watching Twitter, which reportedly is re-examining Elon Musk’s takeover bid. The New York Times reported that the social media company is nearing a deal to sell itself to the billionaire investor, citing unnamed sources. Twitter shares were over 3% higher.

China’s Shanghai Composite dropped 5% on Monday as China struggled to contain a Covid breakout in Shanghai. Beijing reported a spike in cases over the weekend.

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Stocks decrease as the April sell-off keeps on going, and global slowdown fears loom
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Stocks decrease as the April sell-off keeps on going, and global slowdown fears loom
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U.S. stocks decrease, continuing an April market sell-off that has pushed the Dow Jones Industrial Average lower for four straight weeks.
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The Women Leaders
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