As a deluge of earnings releases whipsawed sentiment, shares in the United States erased gains following an overnight wave of dip-buying to take advantage of the lowest stock-price levels in six weeks.
The S&P 500 gained 0.2%, while the Nasdaq 100 remained unchanged, as the indexes appeared to be on track to register their worst monthly results since March 2020 and October 2008, respectively. Europe's energy problem, China's fight to reduce COVID, and an aggressive Federal Reserve all conspired this week to send major European and American stock markets to their lowest levels since mid-March.
After a tech-fueled slide on Tuesday, advances in Microsoft Corp. on better-than-expected results helped bolster confidence. Boeing Co. slumped after burning more cash than projected by Wall Street. and alphabet inc. dropped 3.7% due to weak sales.
As Russia announced that natural gas deliveries to Poland and Bulgaria will be halted, the ice US dollar index climbed to a five-year high, while the euro fell to its lowest level against the greenback since 2017. European gas prices soared as traders considered the possibility of other countries being hit next, raising fears of higher inflation and a harsh economic slowdown.
Markets have been troubled by fears that the Federal Reserve may send the world's largest economy into recession this week, all while activity in China slows as COVID lockdowns bite. Treasury yields fell, although the 10-year yield remained lower for the week at 2.82 %. The price of gold has dropped by 1%.
Twitter Inc. fell further, extending losses as shares fell below Elon Musk's $54.20 per share offer price. After a fall on Tuesday, Tesla Inc. gained ground.
Today's mood was boosted by Chinese President Xi Jinping's pledge for new infrastructure projects, the latest attempt to strengthen the country's economy, which has been damaged by the lockdown.