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U.S. stocks continue to show poor performance

After showing a lack of direction early in the session, stocks continue to perform relatively poorly in trading Wednesday afternoon. The key average is bouncing back and forth across the unchanged line, following the sharp drop seen in the previous session.

Recently, the Nasdaq and S & P 500 have remained in the negative territory, but the narrow Dow is almost flat. The Dow is up 10.49 points or less than a tenth percent at 30,957.48, while the Nasdaq is down 52.07 points or 0.5% at 11,129.47 and the S & P 500 is down 13.93 points or 0.4% at 3,807.62.

Uncertainties on Wall Street are brought about as uncertainty about the short-term outlook. market Following recent volatility, we continue to be on the sidelines of some traders.

The sharp retreat during trading on Tuesday followed the strong uptrend seen last week. This reflects the backlash from the sell seen earlier this month.

Traders also noted the remarks of the Federal Reserve Board, Jerome Powell, who, along with ECB Governor Christine Lagarde and Bank of England Governor Andrew Bailey, participated in a panel discussion at the European Central Bank Forum on Central Banks.

Powell reiterated the beliefs that the United States had previously shared Economy “I am in a good position to withstand stricter monetary policy,” but noted that there is no guarantee that the Fed can design a “soft landing.”

“We believe there is a way for us to achieve a path back to 2% inflation while maintaining a strong labor market. We believe we can do that,” Powell said. I did. “It will obviously be very difficult.”

The Federal Reserve has once again declared its commitment to combat inflation, arguing that the inability to restore price stability poses greater risk to the economy than over-tightening monetary policy.

In US economic news, revised data released by the Department of Commerce showed that US economic activity was slightly smaller than previously estimated in the first quarter of 2022.

The report showed that the decline in real gross domestic product in the first quarter was revised from the previously reported 1.5% to 1.6%. Economists expected that the decline in GDP would not be corrected.

A slightly larger decline in first-quarter GDP than previously estimated followed by a 6.9 percent surge in fourth-quarter GDP in 2021.

Sector news

During the session, oil inventories were under considerable pressure and the NYSE Arca Oil Index fell 1.9%.

Crude oil prices fell, and crude oil delivered in August hit a high of $ 114.05 and then fell $ 0.74 to $ 111.02.

There is also considerable weakness among semiconductor stocks, as evidenced by the 2.7% rise in the Philadelphia Semiconductor Index.

Tobacco stocks also fell sharply on the day, with the NYSE Arca Tobacco Index down 2.4%.

Natural gas, steel and airline stocks have also shown significant weaknesses in afternoon trading, while pharmaceutical stocks have shown some strength on the day.

Other markets

In overseas trading, the stock market in the Asia-Pacific region fell sharply on Wednesday. Japan’s Nikkei 225 Index fell 0.9%, while China’s Shanghai Composite Index fell 1.4%.

On that day, major European markets also fell. The UK’s FTSE 100 index fell 0.2%, the French CAC 40 index fell 0.9%, and the German DAX index fell 1.7%.

In the bond market, government bonds have risen sharply since the end of the last session. After that, the yield on the benchmark 10-year bond, which moves in the opposite direction to the price, drops by 9.3 basis points to 3.113%.

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U.S. stocks continue to show poor performance

Source link U.S. stocks continue to show poor performance

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