Stock markets rebounded on Friday from the shock of disappointing earnings reports from giant tech companies that added to fears of a global recession according to traders.
The week saw missing results in forecasts from some of the world’s biggest companies, including Apple, Amazon, Facebook parent company Meta and Google parent company Alphabet.
This caused steep stock price losses for some of the titans, in turn sending the values of tech companies around the world plummeting.
The tech-heavy Nasdaq Composite opened lower on Friday but quickly followed the Dow and S&P 500 higher.
“It was a week of mostly disappointing results from the US tech giants, which put significant pressure on the Nasdaq,” said market analyst Fawad Razaqzada at City Index and FOREX.com. .
Amazon, which on Thursday predicted slower sales growth during the year-end shopping season after announcing a decline in third-quarter profits, saw its shares tumble about 10% as trading tumbled. started Friday.
Even if the Nasdaq rose, “there’s a good chance the tech-heavy index will drop again as we head into the end of the week,” he added.
Most European markets also rose within half an hour of the start of Wall Street trading.
Investors are actually looking for data showing that the US Federal Reserve’s rate hikes are starting to slow inflation and the economy, which they hope will convince policymakers to slow or pause further rate hikes. of interest.
Meanwhile, the latest batch of US economic data showed prices and wages continuing to rise, and consumers also continuing to spend for the time being.
Briefing.com’s Patrick O’Hare said the latest numbers “shouldn’t cause the Fed to reconsider its aggressive rate hike plans.”
On the foreign exchange market on Friday, the euro fell back below parity against the dollar following official data showing that the US economy rebounded in the third quarter.
Startling figures showing that Europe’s largest economy, Germany, also grew in the July-September period, failed to push the euro above a dollar, where it was earlier in the week for the first time since September.
Elsewhere, the yen was down against the dollar after Japanese Prime Minister Fumio Kishida said the country would spend $260 billion on a stimulus package to cushion the weak economy.
The yen has plunged to a 32-year low against the dollar in recent weeks as Japan’s central bank refused to raise interest rates despite soaring inflation fueled by soaring energy prices.
ExxonMobil on Friday reported higher third-quarter earnings due to high oil and natural gas prices.
The US oil giant has become the latest oil heavyweight to release stunning quarterly figures, with year-over-year profits nearly tripling to $19.7 billion and revenue soaring to 112 billions of dollars.
The company’s stock price fell 0.2% at the start of trading.
Twitter shares were pulled from trading on the New York Stock Exchange after Elon Musk pulled off a mega takeover of the social media giant, with critics and fans eager to see how the richest man of the planet runs one of the world’s leading social media platforms.
– Key figures around 1:30 p.m. GMT –
London – FTSE 100: 0.5% drop to 7,040.28 points
Frankfurt – DAX: 0.4% drop to 13,160.37%
Paris – CAC 40: Increase of less than 0.1% at 6,247.60
EURO STOXX 50: DOWN 0.3% to 3,594.15
New York – Dow: UP 0.5% to 32,202.82
Tokyo – Nikkei 225: 0.9% decline to 27,105.20 (closing)
Hong Kong – Hang Seng Index: DOWN 3.7% to 14,863.06 (closing)
Shanghai – Composite: DOWN 2.3% to 2,915.93 (close)
Euro/dollar: UP at $0.9970 against $0.9965 on Thursday
Pound/dollar: DOWN to $1.1550 vs. $1.1567
Dollar/yen: UP to 147.65 yen from 146.27 yen
Euro/pound: UP at 86.30 pence against 86.11 pence
West Texas Intermediate: 1.0% drop to $88.20 a barrel
North Sea Brent: 0.9% decline to $96.11 a barrel