Global stocks fell on Friday, retreating from Thursday’s record high as investors worried about valuations, while the dollar posted its biggest daily gain since late February.
MSCI’s widest global equity indicator (.MIWD00000PUS) still had its strongest month since November. The index, which covers 50 markets, lost 0.92%.
US indices closed lower after the S&P 500 hit a record high on Thursday.
The Dow Jones Industrial Average (.DJI) fell 185.51 points, or 0.54%, to 33,874.85, the S&P 500 lost 30.3 points, or 0.72%, to 4,181.17 and the Nasdaq Composite (.IXIC) fell 119.87 points, or 0.85%, to 13.962.68.
Investors have been in turmoil in recent weeks, although some have questioned the rally’s rapid pace and fear that the economic recovery and fiscal stimulus have already been taken into account.
Traders are starting to focus more on value stocks, said Dennis Dick, trader at Bright Trading LLC.
“You wonder if this is a time when value will continue to outperform growth,” he said. “We don’t care about last year’s reviews at all, but we’re starting to worry about them now.”
Data on Thursday showed US economic growth accelerated in the first quarter, fueled by massive government assistance to households and businesses. read more On Wednesday, the Federal Reserve assured that it was not yet ready to discuss the modification of its easy monetary policy.
Data showing a 4.2% rebound in U.S. consumer spending in March, amid a 21.1% rise in income as households received additional government assistance, supported the dollar. Read more
The dollar index, a measure of the greenback’s value against a basket of major peers, rose 0.735%.
However, the index was still heading for its worst monthly performance since July 2020.
Yields on US Treasuries eased as investors bought debt to rebalance investors’ portfolios for month-end, despite fears of rising inflation as businesses reopen.
The benchmark 10-year notes last rose 4/32 to a yield of 1.6276%, down from 1.64% on Thursday night.
With just over half of S&P 500 companies reporting profits, about 87% exceeded market expectations, according to Refinitiv, the highest level in recent years.
“The Federal Reserve continues to support, Biden also has this huge stimulus package and … so far we’ve seen relatively benign and strong earnings,” said Eddie Cheng, head of international multi-portfolio management. assets at Wells Fargo Asset. Management.
For the MSCI World Index and the S&P 500, analysts expect earnings to recover over the next 12 months to exceed pre-pandemic levels.
European stocks ended lower after dismal economic data blocked optimism about the recovery, but notched a third straight month of gains.
The pan-regional STOXX 600 index (.STOXX) fell 0.3%, falling below its all-time high and ending the month up 1.8%.
Eurozone GDP data showed a year-over-year decline of 1.8% in the first quarter, stronger than expectations of a 2% decline.
“There is an increasingly bright light at the end of the tunnel,” analysts at Commerzbank said.
“The speed of vaccinations is accelerating and the EU stimulus fund is finally getting underway.”
However, new coronavirus infections in India have reached a record high and the French Minister of Health has said that the dangers of the COVID-19 variant present in India should not be underestimated. Read more
“Risk assets have seen quite a bit of swing over the month.… It’s not going to be a straight line,” Cheng said.
The euro fell 0.80% following data from the Eurozone. In the previous session, the single currency had extended its bull run to a two-month high at $ 1.2150.
“The euro is more sensitive to the European economic outlook than to (what) is happening in the United States,” said Kit Juckes, head of foreign exchange strategy at Societe Generale.
Oil prices have fallen amid concerns over broader lockdowns in India and Brazil.
Brent futures stabilized at $ 1.30, or 1.9%, at $ 67.26 a barrel. US crude futures stabilized at $ 1.47, or 2.26%, at $ 63.54 per barrel.
US crude futures were down 2.2% at $ 63.58 per barrel. Brent crude futures contracts settled at
Spot gold fell 0.3% to $ 1,766.89 an ounce. US gold futures settled 0.14% lower at $ 1,767.30 an ounce.
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