Most of the U.S. stocks are lower than expected. The Dow has made too slight progress due to the other two major indexes down. China’s economy does not look good, leading to the worldwide fear towards a massive economic slowdown. The Dow improved very slightly, the S&P 500 fell at 0.39%, Nasdaq crashed to a 1.2%. Tesla plunged nearly 6%. Amazon, Alphabet, and Apple are also losing the percentage.
China’s economy is slowing down due to the pandemic lockdowns taking a heavy toll on consumption. Actually, energy stocks give a little optimism that China will recover its demand. This is because there is a sign of betterment in the coronavirus management. Investors wondered whether Wall Street could signal the end of the recent selloffs. But Wall Street mega cap stocks were lower than expected.
A portfolio manager at Northwestern Mutual Wealth Management, Matt Stucky gave some criticism towards the situation. The portfolio manager foresees prolonged volatile market backdrop in the past months. There was a big rally in the market, but before that, selloffs occurred severely. Therefore, volatility is inevitable.
This year began with three to four interest rate spikes by the Fed priced into the markets. Currently, it is over ten. The repricing effect, practically, would contribute to a lot of volatility. The mega cap stocks, Wall Street ended up lower. Tesla dropped at almost 6%, Alphabet, Amazon, and Apple also suffer the same situation.
However, shares of Eli Lilly increased after the drugmaker won U.S. approval. It is based on their treatment to support adults with type 2 diabetes. Spirit Airlines soared at 13.62% after JetBlue Airways launched a takeover bid. JetBlue plunged at 6%. Shares of Frontier Group, offered to buy Spirit, gained 6%. Bloomberg reported that Twitter also fell more than 8%.