On Friday, all three key indices of Wall St. had closed out the session in red inks, mostly weighed down by a broad-based weakness in mega-cap tech stocks with Amazon, Alphabet, Apple alongside other tech-related growth stocks stayed largely unresponsive despite their latest strong quarterly earnings’ reports.
Surprisingly, a day after hitting a record closing high, benchmark S&P 500 took a tattering header in the day’s Wall St. despite upbeat quarterly earnings’ report, while several market analysts were quoted saying the investors might be fretted about an overvaluation of mega-cap tech stocks amid a sharp rise in inflation which could prompt the US Fed to take necessary measures including a plausible rate hike despite US Fed Chair’s Powell’s pledge to keep monetary policy accommodative for an unforeseeable period.
Nevertheless, earlier in the day, US Commerce Department data had revealed US Consumer Spending soared 4.2 per cent last month along with a considerable scale of pick-up in inflation indicators. However, a number of analysts had also referred to a weekend profit-taking wave behind what could be branded as a bloodbath in the Wall St.
with both meme and value stocks swung lower.
Wall St. ends lower despite strong earnings
In factuality, of 303 S&P 500-listed companies which had reported quarterly earnings’ report so far, 87 per cent had beaten analysts’ estimates with data provider Refinitiv IBES expecting a 46 per cent climb in profit growth, way above a prior forecast of 24.2 per cent growth in S&P 500, though, market participants remained largely nonresponsive to a raft of riant quarterly earnings’ report, eventually dragging a slew of Wall St.
stocks’ indices down. Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow dwindled 0.54 per cent to 33,875.31 and benchmark S&P 500 shed 0.72 per cent to 4,181.21, while tech-heavy Nasdaq was nudged 0.85 per cent to round off the session at 13,962.68, Nevertheless, despite a flabbergasting weakness across the board in the day’s Wall St., Nasdaq rose 5.4 per cent in April, clocking a sixth straight month of gains, while Dow and S&P 500 added 2.7 per cent and 5.2 per cent respectively in April.
Both indexes reported a third straight month of gains in a row. On the week, S&P 500 remained almost flatline and Dow shed 0.5 per cent, while Nasdaq lost 0.4 per cent. Meanwhile, casting a gloomier outlook for the stocks benefitted by the most during pandemic-led restrictions, a chief investment officer at Cresset Wealth Advisor in Palm Beach, Florida, Jack Albin said, “There is a sense that maybe next quarter is as good as it’s going to get, and we’re going to roll over, particularly among the Nasdaq stocks and Big Tech stocks that benefited from the pandemic. ”