There is no pandemic, but the global economic and financial crisis threatens the entire globe.
This can be seen in the stock prices of the month that just ended: wall street closed the session on Friday, September 30, with losses that left the indices of the main stock and bond market in the world at their lowest in almost two years.
The numbers are overwhelming: September was the worst month on the NY stock market since March 2020, when governments around the world announced the closure of circulation and the paralysis of economies due to the arrival of a virus that remained for more than a year.
In September, the Dow Jones, for example, fell 8.8 percent; the S&P500, for instance, fell 9.3 percent; and the Nasdaq, down 10.5 percent from Aug. 31.
And if you look at it in a broader perspective, the stock market crash in the first nine months of the year is the worst in two decades.
Looking at just the last week: the Dow lost 2.9 percent, the S&P500 was down 2.8 percent and the Nasdaq was down 2.7 percent. A disaster.
Wall Street wobbles in September
Although analysts agree that the present is not at all rosy for the value of most stocks, they understand that such negative market sentiment could herald a rebound.
neil wilsonan analysis specialist at Markets.com, said in a note this Friday that “the feeling is so bad, the discouragement is such that it could be taken as a floor” for what he qualifies as “next good news” what may come in the remainder of 2022.
Wilson said that “sometimes it is necessary to reach the moment of capitulation in which everyone throws in the towel and the market hits bottom”.
The analyst is based on some data that could suggest a rebound, such as inflation in the United States, which fell in annual terms, and private consumption, which moderated the fall.
However, the core price index for personal consumption, one of the Fed’s preferred measures of inflation, grew from 4.7 percent to 4.9 percent in August. The forecasts prior to the publication of the data anticipated a better number.
Consumption falls and that is not good
Another statistic that market analysts in the United States usually look at is the Consumer Sentiment Index compiled by the University of Michigan. This value dropped from 59.5 to 58.6 in September, and that’s not good.
Regarding inflationary expectations, a key rate for these months, it is expected to rise 4.7 percent in the remainder of the year.
In relation to the medium and long term, the expectation is better: 2.7%.
In the middle of the September collapse was involved the mighty Nike, whose shares closed 12.8 percent below the previous day due to the dismal results of its last fiscal quarter.
The leading sportswear firm was affected by the overstock, the drop in sales due to inflation and the increase in the dollar in the rest of the world. Nike sells more than half of its products outside the United States.
In parallel, Meta, Facebook’s parent company, announced a job cut. It will not hire anyone else in most roles in the firm with the goal of minimizing increased costs. The cause: there is less investment in advertising and more competition.
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