US stocks plummet to worst monthly performance since 2020

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The US indexes fell sharply after opening lower, with the S&P 500 plummeting 3.6%. The Dow Jones Industrial Average, which fell nearly 1000 points last Friday, shed another 966 points as it sank more than 2.8% to 32,977.21. The Nasdaq Composite, hit by major declines in the tech sector, plunged more than 4.1%.

Stocks post worst month since March 2020

Volatility across the US market has increased ahead of the Fed’s next interest rate hike, with concerns that a very aggressive approach could further impact the economy.

US economic data this week showed the country’s gross domestic product contracted 1.4% year-over-year in the first quarter. This is critical as it’s the first time since Q1 2020 that US’ GDP has shrunk as much.

And amid fears of recession are other negative macro factors, including rising inflation, a COVID infection surge in China and the geopolitical uncertainty around the Russia-Ukraine war.

Today’s stocks performance has seen the S&P 500 and Nasdaq post their worst month since March 2020. S&P 500 shed 8.8% over the month and the DJIA lost 4.9%.

The Nasdaq has fallen more than 13% in April, making this its worst monthly performance since 2008. YouTuber Crypto Rover commented on it, noting:

April 2022 is the worst month for the #NASDAQ (-13.26%) since October 2008 (-17.35%).

— Crypto Rover (@rovercrc) April 29, 2022

Elsewhere, Treasury yields rose slightly, with the benchmark 10-year yield climbing to 2.92%.

Amazon shares plummet 14%

Amazon Inc (NASDAQ: AMZN) shares fell more than 14% on Friday after the tech giant reported disappointing earnings in its first-quarter results. The company also provided weaker than expected guidance for Q2, denting investor sentiment and contributing to the massive sell-off that hit US stocks on Friday.

Shares of iPhone maker Apple Inc (NASDAQ: AAPL) fell despite the company’s earnings beat. With the broader stock market whipsawed throughout the week, AAPL shed 3.66% to align with broader negativity amid concerns about supply chain bottlenecks.

Shares of Meta Platforms Inc (NASDAQ: FB) and Alphabet Inc Class A (NASDAQ: GOOGL) also fell. FB shed more than 2.5% during normal trading hours and GOOGL declined 3.7%.

The post US stocks plummet to worst monthly performance since 2020 appeared first on Invezz.

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