On April 30, Eastern time, investors waited for the Federal Reserve meeting decision, and a number of economic data rekindled the market's concerns about inflation, and the three major U.S. stock indexes collectively closed down, with the Dow Jones falling 580 points and the Nasdaq falling more than 2%.
Large technology stocks were "wiped out", with Tesla falling more than 5% to lead the decline in technology stocks. Amazon announced its outstanding performance after hours, and once rose more than 6% after hours.
Economic data reveals inflation concerns, and the three major U.S. stock indexes fell sharply
On April 30, Eastern time, the Federal Reserve held a two-day monetary policy meeting, and a number of economic data once again triggered market concerns about inflation.
Data released by the U.S. Bureau of Labor Statistics on the same day showed that the labor cost index, which measures wages and benefits, increased by 1.2%, the largest increase in a year, compared with a 0.9% increase at the end of 2023. The market is expecting a 1% increase. The labor cost index rose 4.2% compared to the same period last year, and a similar increase was seen in the fourth quarter of last year. This suggests that wage pressures persist, leading to high inflation. The Conference Board's consumer confidence index fell for the third consecutive month in April, at 97 versus 104 expected, and the previous value was revised to 103.1 from 104.7, indicating a lack of consumer confidence.
U.S. Treasury Secretary Janet Yellen said inflation has come down sharply, but many goods prices remain above pre-pandemic levels.
The three major U.S. indexes generally opened lower and closed lower across the board. At the close, the Dow closed down 570.17 points, or 1.49%, at 37,815.92, the Nasdaq fell 325.26 points, or 2.04%, to 15,657.82, and the S&P 500 lost 80.48 points, or 1.57%, at 5,035.69.
The agency expects the Federal Open Market Committee (FOMC) to keep interest rates unchanged, and Fed Chairman Jerome Powell's attitude on the issue of interest rate cuts remains in focus. After the minutes of the meeting and the speeches of Fed officials, the details of the balance sheet reduction adjustment became another major attraction.
Tesla fell more than 5%, and Amazon rose 6% after announcing its results
On April 30, Eastern time, large technology stocks collectively closed down across the board, with Apple down 1.83%, Amazon down 3.29%, Google down 2.03%, Facebook down 0.57%, and Microsoft down 3.21%.
Tesla fell 5.5% to $183.28, with a total market capitalization of $584.516 billion.
Bank of America noted that Musk's China move cleared the way for Tesla to launch FSD software in China, which could boost the company's profitability over the next decade. Assuming Tesla drivers in China increasingly adopt its FSD software, the EV maker's profits in this area could reach more than $2 billion a year by 2030, the bank wrote in a report.
Amazon's after-hours results showed that its first-quarter revenue and profit were better than expected across the board, mainly driven by the growth of advertising and cloud computing businesses. Its shares rose more than 6% after hours, but the latest gain narrowed to 1.23%.
Specifically, Amazon's revenue in the first quarter was $143.31 billion, compared with the market expectation of $142.47 billion, compared with $127.36 billion in the same period last year, and the net profit in the first quarter was $10.431 billion, far exceeding the market expectation of $8.686 billion.
Earnings report raised full-year guidance weight loss drug giant Eli Lilly bucked the trend and rose nearly 6%
On April 30, Eastern time, weight loss drug giant Eli Lilly announced its financial results for the first fiscal quarter. Eli Lilly raised its annual revenue and profit estimates as it struggled to meet soaring demand for its best-selling weight loss and diabetes medications. The company's first-quarter revenue was $8.77 billion, up 26% year-over-year and $160 million below market expectations. Non-GAAP EPS was $2.58, $0.09 above the consensus estimate.
After Eli Lilly reported its earnings report, Moody's Ratings confirmed the company's rating at A1, and its outlook was revised to positive from stable.
Eli Lilly closed up nearly 6% at $781.1, with a total market capitalization of $742.643 billion.
(Ivan finishing)
Editor: Captain
Review: Muyu