Stocks in the US fell on Thursday, as concerns about economic unrest and Federal Reserve policies weighed heavily.
Apple, Alphabet and the Nasdaq Composite all suffered losses. The S&P 500 closed at 5,662.89 down 0.22%.
Investor caution was reflected in a slight decline of 11.31 points, bringing the Dow Jones Industrial Average to 41.953.32.
Market jitters are exacerbated by Fed policy and concerns about tariffs
This pullback occurred a day following the Federal Reserve’s announcement that it would not be reducing interest rates in 2025.
Jerome Powell, Fed chairperson, has warned that tariffs are a major concern and could have a negative impact on the economy.
Central bank has also revised their GDP growth forecasts and raised inflation expectations, causing more concern about an economic slowdown.
Investors closely monitor President Donald Trump’s tariff policy, especially as the exemptions for certain Canadian and Mexican imports will expire on April 2nd.
Many traders believe that the Fed will delay any policy changes until it is clear what the impact of tariffs on the economy.
Accenture’s shares fell over 7% as it revealed that the federal services division of its company had lost important government contracts because budget cuts were implemented under Trump.
In its earnings call for the second quarter, this consulting firm pointed to tighter budgets by government as one of the major challenges.
According to Reuters, General Motors is close to a collaboration with Hyundai Motor on commercial electric vans.
Hyundai’s electric vehicle portfolio could be expanded by GM supplying Hyundai with pickup trucks.
Wall Street’s top bet for Q2 is energy stocks
FactSet reports that 65% of analysts rate energy stocks as buys. This makes it the sector most popular on Wall Street going into the second quarter.
The next most popular category is information technology and communications services, which receives 63% of the buy rating. Consumer staples, however, only get 41%.
The Wells Fargo Investment Institute is encouraging investors to capitalize on the recent pullback in the market, and dismissing fears of recession as exaggerated.
Bernstein also named Walmart as a structural winner, with US online sales of $1.2 trillion per year.
Tesla sees record retail investor inflows despite stock slump
Tesla’s longest-ever losing streak is still unaffected by retail investors.
JPMorgan data shows that over the last 12 trading days, individual investors have invested $7.3 billion in Tesla. This is the largest retail investment in a decade.
This shows that EVs are still a strong seller in retail, despite recent drops.
Investor sentiment is unusually negative
Retail investors continue to be bearish, according to the latest American Association of Individual Investors survey (AAII).
Although bullish opinions have increased to 21,6%, this is still below the historic average of 37.5%.
The AAII has been tracking investor sentiment since the early 1980s. This is the longest streak of bearish sentiment.
The post S&P 500 Slips As Economic Uncertainty Weighs On Markets; Tesla Sees Record Retail Inflows first appeared on ICD
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