U.S. stocks changed little after recovering from morning lows

Stock prices fluctuated during the trading session on Thursday, with little change that day. The key average recovered from an early downturn, but eventually ended the session on the other side of the unchanged line.

After falling nearly 275 points in the morning trading, the Dow closed at 34,751.32, down just 63.07 points, or 0.2%. The S & P 500 also fell 6.95 points (0.2%) to 4,473.75, while the Nasdaq rose 20.40 points (0.1%) to 15,181.92.

The slumping closing on Wall Street followed 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.

Sector news

Gold stocks performed the worst on the market that day, with the NYSE Arca Gold Bugs Index rising 4.1%. The index ended the session at the lowest end level in over a year.

Gold stocks went on sale as precious metal prices plummeted, with December deliveries plummeting from $ 38.10 to $ 1,756.70 per ounce.

Steel stocks also showed significant weakness, as reflected in the 2.9% decline in the NYSE Arca Steel Index.

Energy stocks also fell sharply that day as crude oil prices closed flat following Wednesday’s surge. Meanwhile, the strength of airline stocks boosted the NYSE Arca Airlines Index by 1.5%.

Other markets

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 have moved upwards that day. France’s CAC 40 index rose 0.6%, while Germany’s DAX index and the UK’s FTSE 100 index both rose 0.2%.

In the bond market, government bonds expanded the pullback seen in the previous session following retail sales data. Since then, yields on benchmark 10-year bonds, which move against prices, have risen 2.7 basis points to 1.331 percent.

Future outlook

Friday’s transaction could be affected by a reaction to a preliminary report on consumer sentiment at the University of Michigan in September.

Contact for comments and feedback:

Business news

U.S. stocks changed little after recovering from morning lows

Source link U.S. stocks changed little after recovering from morning lows

Back to top button