Wall Street closed lower for the first time in the year, which impacted the price of Argentine Deposit Certificates (Cedears).
Goodbye Cedears: the star investment suffered heavy losses in April, what could happen in May?
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After 5 months of profits, Wall Street closes April downwhich impacted the price of the cedars. For its part, Although the CCL dollar ended higherthe rise was so slight in April that was not enough to compensate and thus, most of the most traded instruments did not give profitable profits.
On Wall Street, the Dow Jones suffered its largest monthly percentage drop since September 2022, while The S&P 500 and the Nasdaq recorded their biggest monthly decline since September 2023. In April, the S&P 500 was down 4.16%, the Nasdaq was down 4.4% and the Dow Jones was down 5%, according to data at the close of trading.
“At the international level, The positive results of corporate balance sheets, especially those of large technology companies, served as a catalyst and this helped counteract the news from economic indicators, which revealed a more marked slowdown in activity than anticipated in the USAwhile inflation continues to exceed the objectives established by the Federal Reserve,” he expressed Guido NigraFinancial Advisor and Sales Trader Private Wealth at Balanz Capital.
Thus, the main decreases among cedars most operated during April were for: Nio (-21.7%), Advanced MicroDevices (-18.7%), tesla (-18.4%), Nvidia (-16.2%), MicroStrategy (-15.9%). As for the Cedears ETFthey all fell in April but those who led the losses were Innovation ARK (-15%), the QQQ (-8.6%), Russel 2000 (-7.2%), and the MSCI Brazil (-6.5%).
“We are still in an environment where the knee-jerk reaction is to extrapolate any higher data into firmer inflation and a more restrictive reaction by the Federal Reserve,” he said Garrett Melson, portfolio strategist at Natixis Investment Managers in Boston. “But nothing has changed: Growth remains strong, labor markets remain firm, and ultimately we are taking a bit of a break from the disinflation process.“he added.
Source: Ambito
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