The US stock market decided to show all its diversity by closing the Dow Jones Industrial index +0.15% in positive territory, but sending the Nasdaq Composite -2.35% to new local lows not seen since November 2020 amid the biggest one-day drop by technology giant Snap (SNAP).
Dow Jones rose while Snap stoked the Nasdaq
Shares of the California-based company lost more than 40% amid comments from CEO Evan Spiegel, who cut his financial outlook for the second quarter of this year, citing rising inflation and interest rates as well as the infamous supply chain disruption
. 
A trader on the New York Stock Exchange. Photo: Associated Press
The fall of Snap triggered significant bearish sentiment in stocks of relevant social media operators. Pinterest (PINS), a recognized extremist organization in Russia, plummeted 23%, while Meta Platforms (FB) lost 7.6%. Twitter (TWTR) shares were down 5.5%.
New lows
of the
industry leaders
New lows of both the current year and the last 52 weeks traders saw on the chart of Google parent company Alphabet (GOOG), the capitalization of which decreased by 5%. The company of Larry Page and Sergey Brin is not the only one, which unequivocally demonstrates that all is not well in the U.S. stock kingdom.
Amazon (AMZN) traded another low of -3.2%. The decline of 6.91% on the securities of Tesla (TSLA) brought them very close to 50% loss from the maximum values of $1243 shown on November 4 of the previous year. By the way, the P/E of Ilon Musk’s corporation is gradually approaching the imputed figures. Now it is less than 85. You have to agree that it is not already prohibitive 1000.
In two previous reviews we gave a local view of the USA stock market, but we would like to say a few words about the Russian stock market. After the events of February and the collapse of Russian depositary receipts in London and New York, Russian regulators closed trading for enough time to save investors.
IMOEX will “pay” for the month-long trading halt
Our receipts plummeted 80%-90% in the West. The same would have happened on the Moscow Exchange. But we didn’t have a collapse. The hapless stockholders were rescued from the ship that should have been sunk along with them. The U.S. stock market is already paying for the abnormal rise in tech stocks. Sooner or later, the time will come for Russian buy-and-holds, too. The market never forgives such foolishness.
99% of the Russian investors who have consistently funded their trading accounts over the past couple of years and rode the pandemic growth have never understood what a correction is. They never understood that the March closing of the stock exchange was an abnormal luck for them against the backdrop of the political conjuncture.
They never understood anything
Apotheosis of the fact that stupid money continues to go to the market is the message about the growth of the number of investors trading on the Moscow Stock Exchange only in April by 442 thousand people. Not surprisingly, the most popular paper to invest with a weight of 25.7% were the shares of Gazprom, which “never” grew, is not growing, and will not grow in the near future.
At the same time the best shares of the Russian market – YNDX attracted only 5.4% of the money coming to the Russian stock market.
If the Russian market has lost its correlation with global platforms, this does not mean that it has become stronger. Moreover, this moment can be a trap for inexperienced participants. Sooner or later our exchanges will catch up with global capital trends. And they will do it rather sharply and as usual quickly. Considering the potential 10%-20% downside for the US, we can assume that the IMOEX Index will go down to 1600 in the short term.
