Stocks sunk lower on Friday as the week's market sell-off intensified following Amazon's
Wall Street closed out the month lower as investors tackled multiple headwinds including the Federal Reserve's more aggressive policy statements, rising rates and inflation, increased COVID cases in China, and the ongoing war between Russia and Ukraine.
The Nasdaq fell 13.3% in April, its worst monthly performance since October 2008, while the S&P 500 lost 8.8%, marking its worst month since March 2020. The Dow was 3.9% lower for the month.
Here's how the market settled to close out the week:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Consumer sentiment fell slightly in April's final print:
The University of Michigan's consumer sentiment index dipped slightly lower in April's final reading, but the index still held above March's levels.
Headline consumer sentiment came in at 65.2 in April, according to the institution's final print released Friday, down from the 65.7 previously reported. In March, the consumer sentiment final print was 59.4, the lowest level since 2011.
"The downward slide in confidence represents the impact of uncertainty, which began with the pandemic and was reinforced by cross-currents, including the negative impact of inflation and higher interest rates, and the positive impact of a persistently strong labor market and rising wages," said Richard Curtin, chief economist for the university's Surveys of Consumers, in a press statement. "The global economy has added even more uncertainties about prospects for the U.S. economy, including the growing involvement in the military support for Ukraine, and renewed supply line disruptions from the COVID criss in China."
"Moreover, consumers have lost confidence in economic policy, with fiscal actions increasingly hampered by partisanship in the run-up to the Congressional elections," he added.
Personal spending rose in March despite high inflationary pressures:
Consumer personal spending rose 1.1% in March, according to the U.S. Bureau of Economic Analysis (BEA) report published Friday. February's spending rate was revised higher to 0.6%, up from the 0.25 previously reported.
Adjusted for inflation, so-called real personal spending rose 0.2% for March, rising from February's upwardly revised print of 0.1%.
Personal income also continued to rise by 0.5% in March following a 0.7% increase in February.
PCE inflation accelerated in March:
U.S. personal consumption expenditures (PCE) increased at a 0.9% monthly rate in March, according to the Bureau of Economic Analysis (BEA) report published Friday. This print compared to a 0.5% rate increase in February. On a year-over-year basis, PCE rose 6.6%, accelerating from February's print of 6.3%.
Excluding volatile food and energy prices, core PCE inflation rose 0.3% in March, matching February's rate. Year-over-year, March's core PCE increased by 5.2%, below February's downwardly revised rate of 5.3%.
Here's how benchmarks started trading after market open:
S&P 500 Index: -1.14% or -48.99 points to 4,238.51
Dow Jones Industrial Average: -0.50% or -169.33 points to 33,747.06
Nasdaq Composite Index: -1.50% or -192.56 points to 12,678.97
