Amazon loses 14% and Wall Street collapses, the Fed is scary – Economy

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Amazon sinks with disappointing quarterly and trailing Wall Street, weighed down by fears of a recession and fear for the Fed. Jeff Bezos’ giant closes the session down 14% and burns $ 206.2 billion in value. Apple also loses 3.66% after warning about revenues in the second quarter of the year: they could suffer a blow between four and eight billion dollars with lockdowns in China and bottlenecks in supply chains.

The drop of two heavyweights like Amazon and Apple makes Wall Street shake. The lists close in deep red. The Dow Jones lost 2.77%, while the S&P 500 fell 3.63%. The Nasdaq fell 4.17%, and ended April as the worst month since 2008 with FAANGs – Facebook, Apple, Amazon, Netflix and Google – which have burned a total of 1 trillion since April 1. The fear of a recession, or even worse of a stagflation, and the expectation for the Fed are influencing the performance of Wall Street. interest of half a percentage point is taken for granted. What agitates analysts is the possibility that the Fed could raise the cost of money by 75 basis points in June in an attempt to stem the runaway inflation, which has soared to a 40-year high.

The fear is that such an aggressive squeeze, accompanied by a rapid reduction in the central bank’s balance sheet soaring to $ 9 trillion with the pandemic, could slide the economy into recession. American GDP unexpectedly contracted by 1.4% in the first quarter despite solid growth in consumption. And the fear is that an aggressive Fed could excessively curb demand, throttling an incomplete recovery from the pandemic.

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