fbpx

PU Prime App

Exclusive deals on mobile

  • Market Insights  >  Weekly Outlook

27 April 2022,08:56

Weekly Outlook

US Shares Rout on Inflation Fears

27 April 2022, 08:56

Share on:
FacebookLinkedInTwitterShare
Share on:
FacebookLinkedInTwitterShare

US shares plunged on Tuesday night (GMT+3) as investor fears about spiking interest rates, slowing economic growth, and rampaging inflation culminated in a rout. The S&P 500 closed the day by 2.8% lower to 4,175.20, Dow Jones slid around 800 points to 33,240.18, while the tech-heavy Nasdaq Composite plunged nearly 4% to 12,490.74, hitting its biggest drop of the year and marking its lowest close since December 2020.

Meanwhile, it seems like investors have rotated into safe-havens, with the US Dollar Index edging to its highest level since March 2020 at 102.39 and the yen finally getting some respite from a months-long downtrend.

Post-Market

The markets are now reacting to the Fed’s ongoing struggle with 40-year high inflation. Tech stocks continue to fall post-market as investors are expressing doubt that corporate profits from a series of earnings will be unable to keep up with the Fed’s increasing aggressive stance on battling inflation. Shares of Google’s parent company Alphabet, for example, dropped around 4% despite reporting earnings that were in line with estimates.

Meanwhile, global stocks have also been dipping on fears that further lockdowns in China will exacerbate current supply-chain issues.

Even gold has not been spared. While traditionally seen as an inflation hedge, the precious metal’s prices have found stronger impetus coming from expectations of the Fed’s upcoming 50-point rate hike. As of Wednesday morning, spot gold has edged below $1900 to $1,898.48 as investors move away from the non-yielding gold in times of high interest rates.

As explained by analysts at Citi, “The dollar is the hedge in markets presently, while commodities including gold are no longer working as effectively”.

Lauren Goodwin, economist and portfolio strategist at New York Life Investments says that the big question for the markets now will not be “whether inflation will be high…[but] whether growth can keep up.”

Investors are now advised to continue paying close attention to the upcoming preliminary figures for US GDP (quarter-on-quarter), which will be released on Thursday, 28 April at 15:30 (GMT+3). Low growth has been forecasted – 1.1% as compared to the previous 6.9% –

As a friendly reminder, do keep an eye on market changes, control your positions, and manage your risk well.

إبدأ التداول بميزة

تداول العملات الأجنبية والمؤشرات والمعادن والمزيد في فروق أسعار منخفضة على مستوى الصناعة وتنفيذ سريع للغاية.

  • ابدأ التداول بإيداعات منخفضة تصل إلى 50 دولارًا على حساباتنا الموّحدة (standard accounts).
  • احصل على دعم على مدار الساعة طوال أيام الأسبوع.
  • تمتع بالوصول إلى مئات الأدوات التعليمية المجانية وبعض أفضل العروض الترويجية.
انضم إلينا

Latest Posts

فتح حساب سريع وسهل

إفتح حساب حقيقي
  • 1

    تسجيل

    قم بالتسجيل للحصول على حساب PU Prime Live من خلال عمليتنا الخالية من المتاعب

  • 2

    تمويل

    قم بتمويل حسابك بسهولة من خلال مجموعة واسعة من القنوات والعملات

  • 3

    إبدء التداول

    الوصول إلى مئات الأدوات في ظل ظروف تداول رائدة في السوق

Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.

Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.

By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.

Thank You for Your Acknowledgement!

Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.

Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.

Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.

Thank You for Your Acknowledgement!