Monthly update: April 2022

Apr Performance: -10.63%

YTD: -34.70%

Grab a drink folks, you‘ll need one! U.S. stocks sunk Friday with the Nasdaq Composite notching its worst month since 2008, as Amazon became the latest victim in April’s technology-led sell-off.

The tech-heavy Nasdaq Composite fell nearly 4.2% to 12,334.64, weighed down by Amazon’s post-earnings plunge. The S&P 500 retreated by 3.6% to 4,131.93. The Dow Jones Industrial Average shed 939.18 points, or close to 2.8%, to 32,977.21.

The Nasdaq finished at a new low for 2022 and the S&P 500 did as well, with the main stock benchmark taking out its previous low in March.

Stocks closed out a dismal month as us investors contended with a slew of headwinds, from the Federal Reserve’s monetary tightening, rising rates, persistent inflation, Covid case spikes in China and the ongoing war in Ukraine.

The Nasdaq fell about 13.3% in April, its worst monthly performance since October 2008 in the throngs of the financial crisis. The S&P 500 lost 8.8%, its worst month since March 2020 at the onset of the Covid pandemic. The Dow was down 4.9% on the month.

Technology stocks have been the epicenter of the April sell-off as high interest rates hurt valuations, and supply chain issues stemming from Covid and the war in Ukraine disrupt business.

Amazon on Friday sunk about 14% — its biggest drop since 2006 — after the e-commerce giant reported a surprise loss and issued weak revenue guidance for the second quarter.

The Nasdaq Composite sits in bear market territory, 23.9% below its intraday high. The S&P 500 is off its record by 14.3%, and the Dow is 10.8% lower.

Friday wrapped up one of the busiest weeks for the first-quarter earnings season and a particularly intense one for tech companies, which drove investor sentiment throughout the week.

Apple shares fell about 3.7% after management said supply chain constraints could hinder fiscal third-quarter revenue.

Intel fell 6.9% after the company issued weak guidance for its fiscal second quarter.

About 80% of S&P 500 companies have beat quarterly earnings expectations, with roughly half of the index’s members having reported results so far, according to FactSet.

A hot inflation reading on Friday underscored the difficult environment. The core personal consumption expenditures price index — the Fed’s preferred inflation gauge — rose 5.2% from a year ago.

Next week, we are awaiting the Fed’s policy meeting, the April jobs report and a flurry of corporate earnings from the likes of Pfizer, Starbucks, Uber and more.

The S&P 500 is now down 13.3% in 2022. The Nasdaq is off by about 21.2%, and the Dow is nearly 9.3% lower on the year.

I’m sorry the news isn’t better, I’m confident better days are coming, it’s certainly been a real challenge so far but let’s try and stay positive.

Best wishes as always,

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