empty
 
 
17.05.2022 02:56 PM
US stock indexes down on Monday

This image is no longer relevant

US stock market indexes largely closed in negative territory on Monday. The S&P 500 fell by 0.39%, while the NASDAQ lost 1.2%. The Dow Jones Industrial Average edged up by 0.08%.

Investors are highly cautious and avoid risk amid concerns over global economic recovery. The European Commision cut its growth outlook for 2022 to 3.2% from 5.7%. US growth outlook was reduced to 2.9% from 4.5%.

The Goldman Sachs cut its US economic outlook for 2022 to 2.4% from 2.6%. The outlook for 2023 was revised to 1.6% from 2.2%.

The New York Empire State Manufacturing Index fell to -11.6 points from 24.6 points in April, indicating worsening economic conditions in the New York region. Analysts expected the index to decline to 16.5-17 points.

Investors are also concerned by weak macroeconomic data from China. Retail sales fell by 11.1%, surpassing the projected decline by 6.1%. Furthermore, industrial output decreased by 2.9%, well below the expected increase by 0.4%. The negative situation in China could make an impact on the economic situation in other countries.

Furthermore, market players try to predict the future actions of the Federal Reserve. The Fed is expected to increase the interest rate to 1.25%-1.5% at its June meeting. Earlier, the regulator hiked the rate by 50 basis points to 0.75%-1%. Analysts are concerned that a very fast monetary tightening cycle could send the US economy into a recession.

On the Dow Jones, the best performing stocks of Monday's session were Chevron Corp. (+3.1%), Merck & Co. (+2.1%), and Verizon Communications (+1.8%). The worst performing stocks were Boeing Co (+2.5%), Walt Disney Co. (+2%), and Salesforce Inc. (+1.7%).

Shares of McDonald's Corp. lost 0.4% after the company announced it would quit Russia after more than 30 years in the Russian market. McDonald's expects to suffer a loss of $1.2-1.4 billion from this move.

Nucor Corp. lost 3.3% as the company prepares to acquire C.H.I. Overhead Doors for more than 3.3%.

In a hostile takeover bid, JetBlue Airways has offered Spirit Airlines stakeholder $30 per share on Monday. As a result, the share price of Spirit Airlines jumped by 13.5%, while JetBlue Airways lost 6.1%.

ManTech International gained 15% on the news of the company's imminent takeover by Carlyle Group Inc. Shares of Carlyle Group Inc. shed 0.3%.

Anastasia Kravtsova,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In April we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback