It was another bearish week for US equities, with major indices suffering weekly declines. The S&P 500’s decline from its all-time high in January hit 20% at one point, before a late-session reversal propelled the benchmark to a flat finish.
The New York Stock Exchange (NYSE) All Share Index (ASI) lost 1.16% for the week, marking its 8th consecutive week of decline. It opened trading at 15,257.4 basis points and it closed the week trading at 15,081.0 basis points. Although the week started lower for the NYSE in the first two days, however, Wednesday’s decline saw the stock market index trade at a price not traded since February 2021. Despite the gains seen during of the past two trading days, that wasn’t enough to reverse Wednesday’s decline.
The NASDAQ posted its 7th week of declines, losing 3.82% in the week under review. It started at a basis point of 11,729.33 and ended the week at 11,354.62 basis points. The week in question saw a drop in trading volume from the previous week of 2.43% as the market recorded a volume of 1.20 billion.
The Dow Jones and the S&P 500 also posted declines, of 2.90% and 3.10% respectively. The Dow Jones is in its 8th week of declines while the S&P 500 is in its 7th week of market declines.
What moves the market?
Stocks plunged into bearish territory on Friday. The recent decline in investor confidence is mainly attributable to lackluster retail profits, which have raised fears that a consumer-driven slowdown is approaching, in addition to challenges related to inflation and the supply chain. supplies that have weighed on sentiment for weeks.
To show just how big the market decline is today, the S&P 500 and Nasdaq posted their seventh consecutive week of losses. It is the index’s longest losing streak since the end of the dot-com bubble in 2001. The Dow Jones index suffered its eighth consecutive weekly decline, the longest since 1932, during the Great Depression.
The S&P 500 spent most of the session in negative territory and at one point was down just over 20% from its January 3 closing high before ending down 18% from compared to this level and stable for the day. A 20% close from that all-time high would confirm that the S&P 500 has been in a bear market since hitting that January high, by a common definition. The tech-heavy Nasdaq was last down about 27% from its record close in November 2021.
Specifically, Tesla’s stock price fell 6.4% after CEO Elon Musk denounced “totally false” claims in a news report that he sexually harassed a flight attendant. air in a private jet in 2016. Other Megacap shares also weighed heavily on the S&P 500. fell, with Apple down 5.50%, Google-owner Alphabet Inc down 1.3 % and Nvidia down 2.5%.
Recent disappointing forecasts from major retailers like Walmart, Kohl’s Corp and Target Inc are also weighing on the markets.
Ross Stores plunged 22.5% on Friday after the discount clothing retailer slashed its 2022 sales and profit forecast, while Vans brand owner VF Corp gained 6.1% on solid earnings outlook for 2023. Shares of Deere & Co fell 14% after the heavy equipment maker reported lower quarterly earnings. Pfizer rose 3.6%, helping the S&P 500 avoid a loss for the day.
Twitter’s share price was on the move again on Tuesday morning as Elon Musk confirmed his $44 billion deal for the platform cannot move forward until there is more clarity. on the number of fake accounts. The stock fell 3% to $36 in premarket trading on the news, down 25% overall from the previous week, as completion of the deal looked increasingly uncertain. In fact, the stock has lost all of its gains since closing at $39.31 on April 1, which was the last session before the billionaire disclosed his minority stake in Twitter.
At the macro level, soaring inflation and rising interest rates are also weighing on the market. These factors have hit the US stock market this year, with danger signals from Walmart Inc and other retailers this week adding to fears about the economy.
Despite these factors weighing on the market, there appears to be a silver lining, if one squints hard enough, which includes falling US bond yields, a topping of the US dollar and commodity prices, and a partial reopening of COVID lockdowns in China.
Top 5 winners
Although US markets performed poorly, there are still a few notable winners for the week. They include:
- Applied Blockchain Inc (APLD) 102.78%
- Nanoviricides Inc (NNVC) 101.18%
- Redbox Entertainment Inc. (RDBX) 98.51%
- Agriforce Growing Systems Ltd (AGRI) 76.05%
- Biomea Fusion Inc (BMEA) 69.43%
Top 5 losers
- Polarityte Inc (PTE) -55.60%
- Chimerix Inc (CMRX) -44.58%
- An2 Therapeutics Inc (ANTX) -41.18%
- Tonix Pharm Holdings (TNXP) -39.73%
- Cynng Inc (CYN) -38.30%