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Benzinga
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Dow Gains Over 100 Points On Wednesday But Records Loss For Third Straight Month: Greed Index Remains In 'Fear' Zone

1. S&P 500 fell 0.8% in April amid economic contractions. 2. GDP decreased by 0.3%, missing forecasts for growth. 3. ADP report shows only 62,000 jobs added in April. 4. Most S&P 500 sectors posted gains, except energy and discretionary stocks. 5. Investors expect results from major companies like McDonald's and Amazon.

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FAQ

Why Bearish?

The overall economic data, particularly GDP shrinkage, reflects underlying weaknesses. Past instances of economic contraction have often led to S&P declines.

How important is it?

Current events strongly indicate a downturn in economic confidence, potentially leading to lower stock prices. Economic data and sentiment indicators directly impact market performance.

Why Short Term?

Current fear levels are immediate, driven by bad economic indicators and pending earnings. Short-term earnings outcomes will likely influence market direction rapidly.

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