![]() The pair fell 7.6% and 5.6% respectively on Friday, accounting for two of the heaviest weights on the S&P 500. The parent companies of both Facebook and Google are scheduled to report their earnings next week. ![]() ![]() The weakness for Snap could mean pressure on other companies that depend on internet advertising, which also happen to be among Wall Street’s most influential stocks. In the stock market, the company behind the Snapchat app tumbled 39.1% after it reported a worse loss and lower revenue for the spring than Wall Street forecast. The 10-year Treasury yield fell to 2.76% from 2.91% late Thursday. Instead of a full percentage point, traders now see an increase in rates of 0.75 percentage point as the most likely outcome. While that raises the threat of a recession, it also has traders ratcheting back expectations for the Federal Reserve’s aggressiveness next week. Higher rates make economic conditions more difficult, and too-aggressive hikes could cause a recession.įriday’s reports are the latest to show parts of the economy are slowing more than expected. Similar reports earlier in the morning also suggested weakness in Europe, underscoring how fragile the global economy is as central banks jack up interest rates in order to whip inflation. “Manufacturing has stalled and the service sector’s rebound from the pandemic has gone into reverse, as the tailwind of pent-up demand has been overcome by the rising cost of living, higher interest rates and growing gloom about the economic outlook,” Chris Williamson, chief business economist at S&P Global Market Intelligence said in a statement accompanying the survey data. business activity may be shrinking for the first time in nearly two years, with service industries particularly weak. On Friday the two-year Treasury yield tumbled again, to 2.98% from 3.09% late Thursday and from 3.14% a week ago, on worries about the economy. Falling yields in the bond market also helped, easing the pressure on stocks after expectations for rate hikes by the Fed sent yields soaring much of this year. Sandwiched between last week’s dispiriting report on inflation and next week’s decision by the Federal Reserve on interest rates, the S&P 500 still delivered its best week in a month following a collection of mostly better-than-expected reports on corporate profits. That was in large part because constituent American Express gave an encouraging earnings report and said its cardholders were spending more. The Dow Jones Industrial Average held up better, slipping a more modest 0.4%.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |