An ugly end to a cruel April Friday saw the S&P 500 release its second correction, a 10% drop from a recent peak so far this year.
The SPX high-capitalization benchmark,
closed one week higher with a 3.6% drop on Friday, closing at 4,131.93, its lowest end since May 19, 2021. This leaves it 10.8% below its close at 4,631 , 60 set on March 29, which was the day he left a correction he had introduced in late February.
A correction is usually defined as a setback of at least 10%, but not more than 20%, of a recent peak. It comes out of a correction after an increase of at least 10% from a minimum correction.
The S&P 500 readjusted only 22 trading days after leaving the previous one, its fastest re-entry since November 2008, during the turmoil of the 2007-2009 financial crisis, when the index returned to correct only 7 trading days after leaving. a. He later fell into a bear market.
The S&P 500 previously suffered a correction on February 22, when it closed at 4,304.76, 10.25% less than its closing record in early January. Shares extended the fall in early March as investors reacted to Russia’s invasion of Ukraine on February 24, which caused oil prices to rise to a 14-year high. fuel geopolitical anxiety.
A closing low of 4,170.70 on March 8 marked the bottom of this movement.
Shares fell again in April’s volatile trade, marked by large daily and intraday fluctuations. The Dow Jones Industrial Average DJIA,
fell 4.9% in April, while the S&P 500 was down 8.8% and the Nasdaq Composite COMP,
fell 13.3%. It was the largest monthly percentage drop since March 2020 for the Dow and the S&P, and the largest for the Nasdaq since October 2008.
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It was the worst April performance for the Dow and S&P 500 since 1970, and the biggest April fall for the Nasdaq since 2000.
Shares fell as investors digested mixed results from former high-flying tech companies. They also adjusted expectations around the Federal Reserve and the prospect of a series of disproportionate rate hikes and an aggressive settlement of the central bank’s balance sheet as it tries to curb inflation that is reaching its highest level in more than 40 years.