Stock investors for a long time the market recovered in April amid sharp fluctuations and losses that have not been observed for decades. The S&P 500 and Dow Jones Industrial Average recorded their worst April since 1970, falling 8.8% and 4.9%, respectively. The fall of the Nasdaq Composite by 13.2% was the largest since April 2000, as monitored by the Dow Jones Market Data Group.
Abyssal April for Shares
Source: Dow Jones Market Data Group “It was a disaster,” James Bianco, president of Bianco Research LLC, told FOX Business. “Markets are beginning to realize that the Fed will be very aggressive,” he added. Bianco predicts that policymakers will raise interest rates by 50 basis points at each meeting this year, including Wednesday this week, with the possibility of an even bigger increase in one of those two meetings later this year.
S&P 500
WARREN BUFFETT INFLATION WARNING Investors are likely to experience higher downward volatility in May unless inflation begins to decline. “What is ending this cycle is inflation, moderate inflation, and that is what is pushing the Fed back,” Bianco added. CONCERNED ABOUT INFLATION? WELLS FARGO SAYS ATTENTION THIS DATA POINT The consumer price index, which tracks many items, including food, gas, rents and healthcare, jumped 8.5% in March from last year, the fastest rate since December 1981, when inflation reached 8.9%. The producer price index is even higher, recording an increase of 11.2%. The diesel fuel component increased 20.4% leading most of the increase. New updates are expected in mid-May. ELON MUSK INFLATION DURATION WARNING CLICK HERE TO READ MORE ABOUT FOX BUSINESS Last week, the US economy shrank unexpectedly by 1.4% in the first quarter, raising new concerns about a recession. Ticker Security Last change% SP500 S&P 500 4131.93 -155.57 -3.63% In a recent research note entitled “Recalibrating our views”, Savita Subramanian of Bank of America, Equity & Quant Strategist described what has changed so far this year. “War, GDP cuts, Fed with steroids,” he said. As a result, it cut the year-end target for the S&P 500 to 4,500, which still means an annual rise of 8.9% from Friday’s closing price.
Nasdaq Composite
With key averages falling sharply this year, especially Nasdaq, LPL Financial’s chief market strategist Ryan Detrick has the opposite view.
Shares in 2022
Source: Dow Jones Market Data Group “Everyone is declining right now, we understand, two years ago everyone was declining and look what happened. We are not saying we will probably have this kind of rally, but there is a lot of negativity and the economy is still strong, profits are driving things “And profits are still quite stable here and we will take this opportunity,” he told FOX Business.
