Following retail sales data, US stocks fell sharply

In the process of trading Thursday morning, stock prices fell almost, partially offsetting the rebounds seen in the previous session. The Dow rose at the start of the transaction, but since then all major averages have slipped firmly into the negative territory.

The key average has fallen below the worst level in recent trading, but remains in the red. The Dow fell 155.13 points or 0.5 percent at 34,659.26, the Nasdaq fell 79.61 points or 0.5 percent at 15,081.92, and the S & P 500 fell 23.84 points or 0.5 percent at 4,456.86.

Wall Street’s weakness follows the release of a report from the Commerce Department in August showing an unexpected recovery in US retail sales.

According to the Commerce Department, retail sales rose 0.7% in August after a 1.8% plunge revised in July.

The rebound was surprised by economists who expected retail sales to fall another 0.8% compared to the 1.1% drop initially reported last month.

Except for the continued surge in sales by auto and parts dealers, retail sales rose 1.8% in August after a revised 1.0% decline in July.

Economists expected non-automobile sales to decline 0.2% compared to the 0.4% decline initially reported last month.

The recovery in retail sales partially reflected the shift to online spending in the prevalence of Delta Variants, coronavirusConsumer resilience could encourage the Federal Reserve Board to implement plans to begin tapering asset purchases later this year.

Recent signs of a slowdown in the economy have created optimism that the Fed may delay tapering plans, allowing central bank asset purchases to continue to support equities.

Meanwhile, another report from the Ministry of Labor reported that the first claims for US unemployment allowances rebounded slightly more than expected in the week ending September 11.

Initial unemployment claims increased to 332,000, up 20,000 from last week’s revised level of 312,000, according to the report.

Economists expected the first unemployed bill to increase from the originally reported 310,000 to 328,000 last week.

The slight increase came after the first unemployment claims fell to the lowest level since March 2020 last week.

Gold stocks have turned to some of the worst performances in the market in the morning trading, bringing a 4.9 percent nosedive by the NYSE Arca Gold Bug Index. The index has fallen to its lowest daytime level in over a year.

Gold stocks are on sale as precious metal prices plummet, with December deliveries plummeting from $ 42.20 to $ 1,752.60 per ounce.

Steel stocks also show significant weakness, as reflected in the 2.6% decline from the NYSE Arca Gold Bugs Index.

Oil services stocks are also showing considerable weakness as oil prices fall, with the Philadelphia Oil Services Index declining 1.9%.

Meanwhile, airline stocks are one of the few groups to go against the downtrend, with the NYSE Arca Airline Index rising 1.2%.

In overseas transactions, stocks market During trading on Thursday, it fell almost across the Asia Pacific region. Japan’s Nikkei 225 Index fell 0.6%, while China’s Shanghai Composite Index fell 1.3%.

Meanwhile, major European markets moved upwards that day. France’s CAC 40 index is up 0.8%, Germany’s DAX index is up 0.5%, and the UK’s FTSE 100 index is up 0.3%.

In the bond market, government bonds are expanding the pullbacks seen in previous sessions. After that, the yield on the benchmark 10-year bond, which moves against the price, rose 2.7 basis points to 1.331 percent.

Contact for comments and feedback:

Business news

Following retail sales data, US stocks fell sharply

Source link Following retail sales data, US stocks fell sharply

Back to top button