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US Wall Street tumbles to lowest since November 2020

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Capital Market
Last Updated : May 06 2022 | 9:31 AM IST
The US stock market finished session steep lower on Thursday, 05 May 2022, erasing more than the prior day's rally on Wall Street, as profit booking triggered across the board amid concerns about higher rates, inflation, and the economic outlook. Doubts that policy makers can arrest runaway prices rocked markets, with the prospect of stagflation unsettled investors.

Meanwhile, sharp increase in treasury yields also weighed on the markets. The 10-year Treasury yield, which moves opposite of price, surged back above 3% on Thursday and hit its highest level since 2018. Rising rates can put pressure on growth-oriented tech stocks, as they make far-off earnings less attractive to investors.

At the close of trade, the Dow Jones Industrial Average index tumbled 1063.09 points, or 3.12%, to 32,997.97. The S&P500 index retreated 153.30 points, or 3.56%, to 4,146.87. The tech-heavy Nasdaq Composite Index dropped 647.16 points, or 5%, to 12,317.69, its lowest closing level since November 2020.

Declining stocks outnumbered advancing ones on the NYSE exchange by 2933 to 396 and 108 closed unchanged. In the NASDAQ, 781 issues advanced, 3962 issues declined, and 227 issues unchanged.

All 11 major S&P 500 sector indexes declined, with bottom performing issues were consumer discretionary (down 5.82%), information technology (down 4.93%), communication services (down 4.1%), materials (down 3.1%), and financials (down 2.9%).

Tech stocks were under pressure, with Facebook-parent Meta Platforms and Amazon falling nearly 6.8% and 7.6%, respectively. Microsoft dropped about 4.4%. Salesforce tumbled 7.1%. Apple sank close to 5.6%.

E-commerce stocks were lower following some disappointing quarterly reports and forecasts deepened concern that the pace of online shopping has slowed. Etsy and eBay dropped 16.8% and 11.7%, respectively, after issuing weaker-than-expected revenue guidance.

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Among Indian ADR, Wipro fell 2.3% to $6.34, WNS Holdings fell 6.6% to $75.74, INFOSYS sank 1.5% to $20.31, ICICI Bank fell 2.7% to $18.85, and Azure Power Global fell 1.9% to $14.69. Dr Reddy's Labs fell 3.65% to $51.01, Tata Motors fell 2.74% to $27.30, and HDFC Bank fell 3.35% to $53.40.

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First Published: May 06 2022 | 8:49 AM IST

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