The New York Stock Exchange closed this Friday in red, after disappointing results from some large companies and the threat of new US sanctions against China.
Its main index, the Dow Jones Industrial Average, fell 2.55%, to 23,723.69 points, and Nasdaq, with a strong technological component, lost 3.20% to 8,604.95 points.
The expanded S&P 500 Index, which represents the 500 largest companies on Wall Street, lost 2.81% to 2,830.71 points.
“The market needed a break anyway. It’s not a big deal,” said Karl Haeling of LBBW.
In April, the Dow Jones appreciated 11.1% and the S&P 500 12.7%. Both indices recorded their best monthly performance since 1987.
The Nasdaq rose 15.4%, its best month since 2000.
However, this week the Dow Jones and S&P 500 fell 0.2% and the Nasdaq fell 0.3%.
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Several of the main companies listed on the New York Stock Exchange presented negative results, including Amazon (-7.60%), which warned that it will invest the 4,000 million dollars of operating profit that it foresees to have in this first quarter in managing the crisis, and Apple (-1.61%), which avoided communicating forecasts for the current quarter.
President Donald Trump has rekindled the flame of the trade war with China, stating that it is considering punitive taxes against Beijing, after learning of indications that the new coronavirus comes, according to his sayings, from a laboratory in the Chinese city of Wuhan.
“It seems incredible that he chooses to return to the front now, given the state of the economy, but Trump seems to want to put attacks on China at the center of his new election campaign,” said Haeling.
“The market downturn is not as related to disappointment (generated by the companies’ ads) as it is to Trump’s actions,” said Patrick O’Hare of Briefing.
The S&P 500 has appreciated 35% since March 23, even though the indicators reflect the severity of the economic shock caused by the covid-19 pandemic and the restrictions imposed to stop its spread, he stressed.
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