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US Wall Street Tumbles to One-Year Lows

US Wall Street Tumbles to One-Year Lows

The US stock market finished the session steep lower on Monday, 09 May 2022, as investors fled risk and sought safe havens amid concerns about the outlook for the global economy due to aggressive moves by global central banks to contain inflation could lead to a period of stagflation or an outright recession.

Central banks in the United States, Britain, and Australia raised interest rates last week, and investors girded for more tightening as policymakers fight soaring inflation.

At the close of trade, the Dow Jones Industrial Average index tumbled 653.67 points, or 2%, to 32,245.70. The S&P500 index retreated 132.10 points, or 3.2%, to 3,991.24. The tech-heavy Nasdaq Composite Index dropped 521.41 points, or 4.29%, to 11,623.25.

Declining stocks outnumbered advancing ones on the NYSE exchange by 3035 to 409 and 91 closed unchanged.

In the NASDAQ, 763 issues advanced, 4196 issues declined, and 202 issues unchanged.

Total 10 of 11 major S&P 500 sector indexes declined, with bottom performing issues being energy (down 8.3%), real estate (down 4.62%), consumer discretionary (down 4.26%), information technology (down 3.94%), and materials (down 3.24%).

Energy stocks were the market’s worst performances, moving sharply lower along with the price of crude oil. Crude for June delivery plunged $6.68 to $103.09 a barrel, as coronavirus lockdowns in China, the top oil importer, fed worries about energy demand.

In company news, Kosmos Energy shares shed 17% after the oil and natural gas company cut its FY22 production forecast by roughly 5.8% at its midpoint, now expecting to average between 63,000 to 67,000 barrels of oil equivalent per day compared with its prior guidance range of 67,000 to 71,000 barrels per day.

Among Indian ADR, Wipro fell 1.76% to $6.13, WNS Holdings fell 3.84% to $73.16, INFOSYS sank 0.15% to $19.82, ICICI Bank fell 2.86% to $17.98, and Azure Power Global fell 9.77% to $12.84. Dr Reddy’s Labs fell 1.63% to $50.03, Tata Motors fell 4.2% to $25.41, and HDFC Bank fell 2.57% to $50.70.

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