The U.S. stock market is aiming for a turnaround on Tuesday after the Evergrande Group has had its worst day since May.

The US stock index bounced slowly on Tuesday after the worst day of the S & P 500 over four months.

  • Dow Jones Industrial Average
    + 0.24%

    It increased by 158.60 points (0.5%) to 34,129.07.

  • S & P 500
    + 0.09%

    It increased by 21.12 points (0.5%) to 4,378.85.

  • Nasdaq Composite Index
    + 0.23%

    At 14,795.50, it increased by 81.60 points, or 0.6%.

On Monday, the Dow fell 614 points (1.8%) to 33970, the S & P 500 fell 75 points (1.7%), and the Nasdaq Composite fell 330 points (2.2%).

What is driving the market

Is this turnaround Tuesday on Wall Street?

The story of the Evergrande of China
Real estate developers, who are expected to default in the coming weeks, are on Monday for the worst recession in much of the market since May. It came the day when many major Asian markets were closed due to holidays and the Chinese market remained closed due to holidays.

Marko Kolanovic, Chief Global Market Strategist at JPMorgan Chase, said: ..

Koranovich expects it to recover as the coronavirus delta wave weakens, and companies expect to exceed their earnings expectations for the third quarter.

Wall Street analysts struggled to say that the Evergrande Group was not the moment of Lehman in China.

“The true’Lehman moment’is a crisis of a very different scale,” said a Barclays analyst led by Ajay Rajadhyaksha. “We need to make sure that lender strikes in most of the financial system, the surge in credit pain away from the real estate sector, and that banks do not want to face each other in the interbank financing market. , Massive policy mistakes by Chinese authorities should also be seen. ”

read: Will Evergrande be China’s “Lehman Moment”?Wall Street says no

Concerns about the Evergrande Group have come at a critical time, and some companies have correctly warned that September will be bumpy for US equities after a smooth summer.

The Federal Reserve Board of Governors will launch the first two-day meeting on Tuesday, which could lead to more hawkish interest rate forecasts, but Congress is struggling to agree on a package of infrastructure spending. As a result, we have not raised the Federal Reserve limit so far.

Even after the fireworks on Monday and the loss of nine of the last 11 sessions, the S & P 500 is just 4% below record highs.

In public health news Johnson & Johnson
+ 0.43%

Data from Phase 3 trials and real-world evidence confirm that the single-shot COVID-19 vaccine provides strong, long-term protection against hospitalization and death. According to the company, further data show that booster shots provide protection and improved antibodies.

US homebuilders began building homes in August with a seasonally adjusted annual rate of 1.62 million homes. 3.9% increase Starting last month, the US Census Bureau reported on Tuesday. Compared to August 2020, housing starts increased by 17.4%. The pace of new housing unit permits also increased in August, up 6% from July and 13.5% from a year ago.

Which company is paying attention to?
  • Share Uber Technologies Inc.. UBER Nearly 7% after the rider updated its third quarter outlook after achieving profitability in the first few months with adjusted Ebitda (earnings before interest, taxes and depreciation) in July and August. I have recovered.

  • Share Holdings Inc.. Specification It fell 3.6% after a software provider aimed at simplifying back office operations announced that it would offer $ 1 billion in common stock to the public and $ 500 million in convertible bonds to qualified institutional investors.

  • Transfix Inc, a digital freight platform. Announced on Tuesday that it will merge with a special-purpose acquisition company and make it public. G Square Ascend GSQD, + 1.55% In a deal with a $ 1.1 billion pro forma corporate value.

  • Share Activision Blizzard Inc. ATVI 0.2% off after stating that the company is working together to address and resolve workplace complaints Securities and Exchange Commission Survey For disclosure of employment issues.

How are other assets traded?
  • 10-Year Government Bond Yield TMUBMUSD10Y According to Dow Jones market data, benchmark yields rose 0.3 basis points to about 1.313% after the largest rise since August 13. Yields and debt prices move in opposite directions.

  • ICE USD Index DXYThe currency scale for the basket of six rivals fell 0.2%.

  • Oil futures traded higher on Tuesday in US benchmarks CL00 Trading 0.8% higher at $ 70.72 a barrel.Gold futures GC00 It rose 0.5% and traded for $ 1,773 an ounce.

  • In Asia, Hang Seng Bank in Hong Kong
    + 0.51%

    Nikkei 225 managed a slight advance after a 3.3% rout on Monday

    After a vacation, it plummeted in Tokyo. The Chinese market remains closed until Wednesday.

  • The Stoxx Europe 600 also boosted the European market.
    + 0.96%

    1% increase, London FTSE 100
    + 0.99%

    Transactions 1.1% higher.

The U.S. stock market is aiming for a turnaround on Tuesday after the Evergrande Group has had its worst day since May.

Source link The U.S. stock market is aiming for a turnaround on Tuesday after the Evergrande Group has had its worst day since May.

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