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US stocks continue to weaken after an early recession

Stocks fell sharply in the course of Tuesday’s trading session after failing to maintain the initial move to a rise. All major averages show a marked decline, with tech-heavy Nasdaq much lower.

The key average fell further in recent trading and fell to the new lows for the session. The Dow fell 305.51 points (1%) to 31,132.75, the Nasdaq fell 253.60 points (2.2%) to 11,270.95, and the S & P 500 fell 54.38 points (1.4%) to 3,845.73.

The initial strength of Wall Street partially reflects the positive reaction to the news that China has reduced quarantine time for international travelers as a major step in easing control of Covid-19.

The news contributed to the strength of travel and casino stocks, with Wynn Resorts (WYNN) and Las Vegas Sands (LVS) showing a significant uptrend.

After major financial institutions such as Morgan Stanley (MS), Goldman Sachs (GS), Bank of America (BAC) and Wells Fargo (WFC) have passed the annual stress test of the Federal Reserve. Bank of America also showed its strength early after raising dividends.

However, buying motivation diminished shortly after the start of trading, prolonging concerns that the potential recession would continue to weigh heavily. market..

Negative sentiment may have arisen in response to the Conference Board’s report that US consumer confidence fell to its lowest level in more than a year in June.

The Conference Board said the consumer confidence index fell from 103.2, which was revised downwards in May, to 98.7 in June. Economists expected the index to drop from 106.4, which was originally reported last month, to 101.0.

With continued decline, the Consumer Confidence Index has fallen to its lowest level since reaching 95.2 in February 2021.

Sector news

Retail stocks fell sharply and the Dow Jones Industrial Average fell 2.8% as consumer confidence declined.

Biotechnology stocks also show significant weaknesses, as reflected in the 2.1% downturn in the NYSE Arca Biotechnology Index.

On the day of the event, the NYSE Arca Pharmaceutical Index fell by 2%, and pharmaceutical stocks also fell considerably.

Inventories of computer hardware, semiconductors and gold are also showing a marked downtrend, and energy inventories continue to rise strongly amid rising oil prices.

Other markets

In foreign trading, Tuesday’s trading saw a significant rise in the Asia-Pacific stock market. Japan’s Nikkei 225 Index rose 0.7% and China’s Shanghai Composite Index rose 0.9%.

On that day, major European markets also started to rise. The UK’s FTSE 100 index rose 0.9%, while the French CAC 40 index and the German DAX index rose 0.6% and 0.6%, respectively.

In the bond market, government bonds saw their initial weaknesses and bounced near the unchanging line. As a result, yields on benchmark 10-year bonds, which move in the opposite direction of price, are up 3.196% below the basis point.

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US stocks continue to weaken after an early recession

Source link US stocks continue to weaken after an early recession

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