Wall Street poised for more losses after Dow’s 1,000-point thrashing

view original post
Placeholder while article actions load

Wall Street’s lugubrious mood dragged into Friday, with the major U.S. indexes on track to extend their losses a day after registering their steepest slump since the beginning of the pandemic.

The Dow Jones industrial average is poised for a 150-point drop at the opening bell, a day after the blue-chip index shed more than 1,000 points, or 3 percent. The broader S&P 500 index is projected to slip 0.6 percent after erasing 3.6 percent. The Nasdaq — which has been heavily battered by sell-offs of highflying tech companies — is poised to give up another 1 percent after Thursday’s 5 percent dive.

The declines came as investors awaited April jobs data, hungry for good news. Stocks oscillated wildly this week — soaring one day and careening the next — as investors tried to wrap their heads around the Fed’s approach to reining in inflation that is seeping into every aspect of American life, from the car lot to the grocery counter.

“Concern about inflation is the culprit, as ever, and the wild swings we’ve seen this week are a reminder that sentiment is about as fragile as a porcelain doll,” Russ Mould, investment director at AJ Bell, said Friday in comments emailed to The Post. “The other fear is that the cure for inflation, higher rates, could be as bad as the disease if they choke off growth and even lead to recession.

Moods were similarly sour overseas as investors reckoned with ongoing fallout from the war in Ukraine and the pandemic.

Asian markets declined broadly as China’s tough covid restrictions continued to weigh on business activity. With the exception of Japan’s Nikkei 225, which closed nearly 0.7 percent higher, all registered losses. Hong Kong’s Hang Seng Index tumbled 3.8 percent, while the Shanghai Composite index gave up more than 2 percent.

In Europe, markets were trading lower across the board at midday, with the broader Stoxx 600 index down about 1.5 percent as the region prepared to enact sanctions targeting Russian oil, including a ban on petroleum imports.

Oil prices climbed higher in response, with Brent crude, the international oil benchmark, gaining 1.7 percent to trade around $112.75. West Texas Intermediate crude, the U.S. oil benchmark, was trading around $110 per barrel.