U.S. Stocks Tried to Rebound in Early Trading
The three major U.S. stock indexes opened lower today on worries about a global economic slowdown, aggressive monetary tightening by the U.S. Federal Reserve (Fed)…
The Dow Jones Industrial Average opened down 44.51 points, or 0.14%, at 32,152.15.
The S&P 500 opened down 10.87 points, or 0.27%, at 4,013.02.
The Nasdaq opened down 77.86 points, or 0.66 percent, at 11,727.14. Central News Agency (translation)
U.S. stocks tried to rebound in early trading, but the producer price index (PPI), which reflects supply chain conditions, increased by 11% year-on-year in April, the fifth consecutive month of double-digit rises. Although lower than the 11.5% of the previous month, the consumer price index, like the one announced the previous day, has dropped, but the drop is too indifferent to reassure investors.
The S&P 500 has reached a new low in 2022. At the close, it has fallen more than 18% from its 52-week high and is getting closer and closer to a bear market.
The Nasdaq is already in a bear market, having corrected about 30% from its all-time high. Investors continued to sell technology stocks, and Apple fell another 2.6%. On the 12th, it officially lost the throne of the world’s most valuable company and was replaced by Saudi Aramco.
Shares in Apple have fallen 20 percent this year, while Saudi Arabian Oil Corp has climbed 28 percent.
“Barron‘s” (Barron’s) analysis, Apple’s continued decline is really a bad omen for the overall market. Apple is down 2.7% today after falling 4.6% in the previous session, which is very rare.
“Barron’s Weekly” said that it is no wonder that investors are anxious. If Apple can’t hold it, let alone the broader market? After all, Apple’s weight in the S&P 500 is about 7%. If Apple leaks, the index will not rise.