- US stocks plunged Friday to cap off a losing month for each of the major indexes.
- The tech-heavy Nasdaq wrapped up its worst-performing month since 2008.
- Russia’s central bank warned that sanctions would crash its economy and inflation will surge.
US stocks fell Friday, as each of the three major indexes capped off losing months. The tech-heavy Nasdaq closed out its worst-performing month since 2008, shedding more than 3% for the day as investors fled the e-commerce giant after downbeat earnings.
“Some investors may be hoping for May flowers after these April showers, but historical tendencies suggest bulls should remain vigilant — down Aprils tend to be followed by down Mays,” Chris Larkin, Managing Director of Trading at E*Trade said. “And on top of that, May’s average return is even worse when the SPX is red for the year heading into the month.”
Mixed tech earnings have weighed heavily on investors, as many pandemic winners begin to deflate in the face of tighter monetary policy from the
† The Federal Open Market Committee is set to meet next Tuesday and Wednesday. It is widely expected that the central bank will hike rates by 50 basis points, with markets also pricing in a chance of a 75 basis point hike at the June meeting.
Here’s where US indexes stood at the market close at 4:00 pm on Friday:
Bank of America trimmed its S&P 500 forecast from 4,600 to 4,500, and its analysts said markets are pricing in a one-in-three chance the US economy will enter a recession.
Cathie Wood’s Ark Innovation, is about to cap off its worst month ever, with a 29% decline in April. That puts Wood’s flagship fund roughly 70% below its record-high in 2021 when pandemic stars like
and Teladoc were surging.
In Europe, nations are scrambling to ditch Russian oil but energy firm Vortexa said the US is shaping up to fill that gap. “The US will rank highly, that’s natural, given its size, and its proximity and also the crude quality,” Vortexa’s chief economist said.
Meanwhile, Russia’s Finance Ministry said it made a dollar bond payment to Citibank Friday, ahead of its 30-day grace period deadline on May 4. If the payment is processed successfully, Russia would avoid a historic default.
Still, Russia’s economy continues to reel. The central bank cut interest rates again Friday, and warned that the economy will crash amid sanctions and soaring inflation.
Oil traded mixed, with West Texas Intermediate down 1.26% to $104.03 a barrel. Brent crude, the international benchmark, rose 1.68% to $109.40 a barrel.
Gold rose 0.56% to 1,901.10 per ounce. The 10-year yield climbed 3.8 basis points to 2.901%.
Bitcoin fell 4.18% to $38,385.68.