Market Recap – May 2nd
On Tuesday’s trading day, markets continued to push lower levels as investors speculate the Fed’s upcoming interest-rate decision and the guidance going further into the year. Following First Republic’s takeover, several more regional banks tumbled with analysts pointing to a potential pause in hikes as the Fed analyzes the stability of the financial market. For the broad indices, the S&P 500 dropped 1.16%, the NASDAQ Composite went down 1.08%, and the Dow Jones also fell 1.08%.
One of the biggest falls from financial firms was LA-based bank PacWest which saw its shares fall 27.78%. Aside from the losses of regional banks, another notable name that fell deep into the red was education company Chegg, losing 48.41% as investors fear competition from AI such as ChatGPT.
Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio, or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.