File photo showing a Wall Street street sign near the New York Stock Exchange
PARIS (Reuters) – The New York Stock Exchange continued its decline in early trading on Friday as investors continued to reduce their exposure to equities amid the growing prospect of a recession and weaker corporate earnings quoted in the context of rising interest rates.
A few minutes after the start of trading, the Dow Jones index lost 348.87 points, or 1.16%, to 29,727.81, the lowest since the start of the year.
The Standard & Poor’s 500 fell 1.25% to 3,711 and the Nasdaq Composite lost 1.06% to 10,949.27.
The decline in US stocks, fueled by fears over the war in Ukraine and inflation, accelerated with announcements from the Federal Reserve on Wednesday, fueling concerns that the central bank will take longer than expected to bring down inflation, at the risk of triggering a recession.
The Dow Jones has lost more than 18% since January 1, the S&P 500 and the Nasdaq more than 21% and 29% respectively. And the decline may not be over, since Goldman Sachs lowered its forecast for the S&P 500 at the end of 2022 by 16%, to 3,600 points, or almost 4% below the current level.
Among the big technology and growth stocks, Alphabet lost 0.81%, Apple 1.02%, Amazon 1.5% and Tesla 2.18%.
Among banking stocks, which may also suffer in the event of a recession, Morgan Stanley drops 2.06%.
The CBOE volatility index, a closely followed barometer of investor anxiety, rose to 28.16 points.
(Written by Marc Angrand)