NewsLatest earnings report sends stocks tumbling on Wall Street

Latest earnings report sends stocks tumbling on Wall Street

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The AP reports that New York City (NYC) — As investors digested the latest round of earnings reports from several major American corporations, Wall Street turned mixed in the afternoon.

0.2 percent of the S&P 500 was down as of 12:21 Eastern time. Nasdaq shares dropped 0.5% while the DJIA climbed 22 points, or 0.1 percent, to close at 35,182.

After a strong start, technology stocks dipped and ended the day mixed. As a result of high valuations for many of the larger technology companies, they have more influence over the overall market. Nvidia, a chipmaker, fell 2.5% while Apple rose 1.8%.

Following its announcement that it expects to make a profit in the second quarter as more people begin to travel again, American Airlines saw its stock rise 4.2%. That upbeat outlook boosted the travel industry as a whole, including rival airlines. Expedia gained 1.4%, while Carnival gained 1.8%.

Sales of electric cars and solar panels rose 5.9 percent after Tesla reported strong sales and a seven-fold increase in profits, despite supply chain kinks worldwide.

Even though the stock market has been volatile this week, the major indices are still on track to post gains for the week. Amid concerns about rising inflation and the Federal Reserve’s shift away from an ultra-low interest rate policy, investors are analysing the latest round of corporate earnings.

As of now, interest rates have risen just a quarter-percentage point, and Wall Street expects another rate increase in two weeks. Other central banks have also raised interest rates in an effort to lessen the impact of rising prices on businesses and consumers.

In anticipation of higher interest rates, bond yields have been rising. From a low of 2.84 percent, the yield on the 10-year Treasury increased significantly to 2.94 percent, which is close to its highest level since December 2018.

Since Fed officials and other central bank members have been making frequent comments, investors have been paying close attention to what Fed Chair Jerome Powell and European Central Bank President Christine Lagarde will say on Thursday during the IMF/World Bank meeting in Washington, DC.

In the wake of the pandemic’s initial surge in activity, central bankers and economists have been warning of a slowdown in economic growth as the world’s persistently rising inflation restrains consumption. Since Russia’s invasion of Ukraine, fears of a slowdown have increased, leading to a rise in energy and commodity prices that could prolong rising inflationary pressures.

United States crude oil prices rose by 2.1% on Thursday, bringing their year-to-date gain to about 38%. Because of this, gas prices have increased, which has taken a bigger bite out of consumers’ wallets. Wheat and corn prices have also risen, as Ukraine is a major global wheat and corn producer. Food products rely heavily on these ingredients.

Even as the economy continues to show signs of recovery from the pandemic, rising prices on everything from food to clothing and uncertainty over inflation have been lingering. On Thursday, the Labor Department reported that the number of Americans receiving unemployment benefits fell to its lowest level in more than 50 years, while the number of people applying for unemployment benefits dipped.

Also read: Chief Growth Officer John Avalos named by Arcfield and Chief Technology Officer Ted Fidder named by Arcfield

James
Jameshttp://Shouzy.com
Technology has been James's passion for over a decade. After graduating from the University of Chester with a Bachelor of Arts degree in Journalism in 2006, started writing full-time shortly after. Over the years, he has worked on everything from Windows XP to Red Star OS, but more recently has settled into the Apple ecosystem. A regular contributor at shouzy.com, James writes about iOS, macOS, and Apple hardware.

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