Weekly Market Update 22 - 04 - 2022
Apr 25, 2022
Welcome to your Weekly Market Update
The Dow Jones Industrial Average (a basket of the 30 largest companies in the U.S.) remained optimistic this week and even broke beyond the highs set in March. This was until Fed Chair Jerome Powell was due to speak at the "Debate on the Global Economy" this Thursday evening gone. With one of the hottest topics to cover being the rapid increase in inflation, Fed Chair Powell said the central bank is committed to raising rates "expeditiously" to help to combat inflation.
"It’s absolutely essential to restore price stability" he added, leading to the market assuming there would be a 50 basis point rate hike in May.
This in turn drew stock prices from their monthly highs as The Dow Jones fell over 2%.
The technology sector (which saw the most growth after the pandemic) was the worst hit, with the Nasdaq 100 falling 11% from its highs in March. Declines in share prices for PayPal, Spotify, and Netflix helped to put doubt in the minds of tech investors.
This in turn drew stock prices from their monthly highs as The Dow Jones fell over 2%.
The technology sector (which saw the most growth after the pandemic) was the worst hit, with the Nasdaq 100 falling 11% from its highs in March. Declines in share prices for PayPal, Spotify, and Netflix helped to put doubt in the minds of tech investors.
Netflix helped to fuel the ‘tech sell off’ as they had a disappointing quarter due to mass subscriber loss, with stock prices falling almost 40% over the past 2 days. We are invested and we could see this presenting an even greater opportunity to buy more shares once we see the stock price ‘bottom out’.
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Chart Of Netflix.
Rest assured the outlook is not all doom and gloom as we finish off on a positive, our students and ourselves were issued new shares in Warner Bros. Discovery Inc. as we are holding shares in AT&T. This was due to their merger with Discovery, creating the new mega-media conglomerate. As a result, we saw ourselves and our students closing out in profit, banking 1.5%. Until the next week’s Market Updates…Have a great trading week! If you have any questions, click the button below to schedule in a call with ourselves or alternatively you can email us at [email protected] |
