Article source: ConstructConnect
April was not a good period for stock markets. In North America, on a month-to-month basis, the DJI was -4.9%; the TSE -5.2%; the S&P 500, -8.8%; and NASDAQ, -13.3%.
On a year-over-year basis, only the Toronto Stock Exchange (TSE), which has a heavy weighting of resource sector firms, managed a gain, +8.7%. (Commodity prices have been on an upswing.) The S&P 500 was -1.2% y/y; the DJI, -2.7%; and NASDAQ, -11.7%.
Versus its 52-week high, NASDAQ was a stunning loser, at -23.9%. A drop of -20.0% or worse is known as ‘bear’ territory. The Russell 2000 index, for small cap firms, was also bearish in April, at -24.2% compared with its peak.
Several of the biggest high-tech firms have been missing profit targets (Meta), or suffering unexpected and uncharacteristic losses (Amazon), or seeing reductions in their number of subscribers (Netflix).
Runaway inflation and its unwelcome companion, interest rate hikes, have also been suppressing the investment sentiment of day traders, hedge funds and brokerage houses.
The net effect has been a pummeling of valuations unprecedented in a decade plus.
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