Week In Perspective May 1, 2022: Economy Slows; Stocks Retreat
On Friday, a sharp sell-off sent major stock market indices into negative territory for the week, capping a volatile close to April.
On Friday, a sharp sell-off sent major stock market indices into negative territory for the week, capping a volatile close to April.
Stocks posted losses in a holiday-shortened trading week as the first-quarter earnings season kicked off and investors digested new inflation data.
Greater clarity on monetary policy and improved investor sentiment on the economic outlook propelled stocks in March to their first monthly gain of the year.
Stock prices fell last week in response to the Fed’s plan to combat inflation, which staked out a more aggressive stance than investors had anticipated.
Stock prices bounced around following strong gains in two previous weeks as money managers appeared to reposition their portfolios ahead of the first-quarter close.
With growing confidence in the economy’s resilience, stocks posted another week of solid gains.
After surrendering gains on Monday, stocks surged higher for four consecutive days. The rally was propelled by strong economic data.
Intensifying hostilities in Ukraine continued to unsettle markets, as investors grappled with the war’s impact on the global economies.
War in Ukraine weighed on stocks as investors assessed the economic impact of continued hostilities, expanding economic sanctions, and potentially higher inflation due to rising oil prices and new stresses on the global supply chain.
Escalating tensions in Eastern Europe upended markets in February, sending stocks lower for the month. The Dow Jones Industrial Average dropped 3.53 percent while the Standard & Poor’s 500 Index fell 3.14 percent, and the Nasdaq Composite lost 3.43 percent.1
Investors rode a rollercoaster of emotions as rising hostilities at the Russian-Ukrainian border sent stocks sharply lower before a powerful late-week rally erased early losses.
Stocks closed lower for the week as escalating tensions on the Russian-Ukrainian border added to existing jitters over higher inflation and a pending tightening of monetary policy.
A hot inflation print and the growing concern of a Russian invasion of Ukraine sent stocks tumbling late in the week, leaving major indices lower for the five-trading days.
At the start of the week, stocks extended the previous week's rally with some high-growth companies leading the move higher. Strong company profits fueled the market in the middle of the week until an earnings disappointment from a mega-cap company took investors by surprise.
An exceptionally volatile week, marked by wide intraday price swings, whipsawed investors with stocks ending higher following a surge to the upside on the final trading day of the week.
Stocks extended their January retreat as worries over inflation and rising bond yields continued to exert downward pressure on prices.