New York, Apr 30 (IANS): US stocks plunged, with the Nasdaq marking its worst month since October 2008 and the S&P notching its worst month since March 2020 at the onset of the Covid pandemic.
The tech-heavy Nasdaq fell 4.2 per cent on Friday, dragged down by Amazon, which dropped nearly 15 per cent after it missed earnings expectations, CNN reported.
The S&P 500 shed about 3.6 per cent on Friday, while the Dow dropped about 940 points, or 2.8 per cent.
The most closely watched inflation reading released Friday — the core personal consumption expenditures price index -rose 5.2 per cent from a year ago, spelling more trouble for the economy.
The Nasdaq fell around 12 per cent this month, the S&P 500 lost more than 7 per cent and the Dow was off by nearly 4 per cent, CNN reported.
An ever-growing number of headwinds are leaving investors unsure of what comes next. This earnings season has been lukewarm, and US gross domestic product dropped by 1.4 per cent, falling well below analysts' estimates of a 1 per cent gain.
The Federal Reserve has shifted to a hawkish stance, indicating it will increase the pace at which it raises interest rates next week, the report said.
Globally, the Russia-Ukraine conflict exacerbated commodity price inflation and left companies uncertain about their second-quarter outlook.
China has seen worsening growth and continues to rattle global supply chains with its zero-Covid policy shutdowns, and the deglobalisation trend is hurting multinational companies in the S&P, CNN reported.
The Nasdaq is now in bear market territory, about 23 per cent below its high. The S&P 500 is more than 13 per cent lower than its high and the Dow is 10 per cent lower than its record.
Bank of America analysts trimmed 100 points off their year-end S&P 500 target on Friday, to 4,500. The average peak-to-trough decline in the S&P 500 amid recessions is about 32 per cent, they said, meaning that the current 10 per cent year-to-date decline "can be very roughly interpreted as discounting a one-third chance of a recession".
If the probability of a recession rises, the bank said, steep falls could continue, CNN reported.