US Stock Movement | Nasdaq 100 Index down 10% from October last year’s high; major tech stocks broadly decline

Zhitong Finance APP learned that on Friday, U.S. stocks opened lower across the board, with the Nasdaq 100 index falling 0.8%, down 10% from its peak last October, as the market anticipates a technical adjustment phase. Star tech stocks declined broadly, with Tesla (TSLA.US) dropping over 2%, Microsoft (MSFT.US), Meta (META.US), Google A (GOOGL.US), and Amazon (AMZN.US) falling nearly 2%, and Nvidia (NVDA.US) dropping nearly 1%.

On the news front, due to the prolonged conflict between the U.S. and Israel, additional downside risks have emerged for the U.S. economy, prompting several institutions to recently raise the probability of a recession in the U.S. According to U.S. sources on the 25th, Moody’s Analytics model indicates that the probability of the U.S. economy entering a recession within the next 12 months has risen to 48.6%; Goldman Sachs has raised its forecast for this probability to 30%; Wilmington Trust and Ernst & Young-Parthenon project the probability of a recession in the U.S. at 45% and 40%, respectively. Typically, this probability should be around 20%.

Mark Zandi, chief economist at Moody’s Analytics, stated that it is concerning that the recession risk is “high enough to be uncomfortable and is continuing to rise,” and that an economic recession is a real threat. If current high oil prices persist until late May or the end of the second quarter, “the U.S. economy will enter a recession.”