US stocks haven’t changed much after the next slump session

Following the sluggish performance seen in the previous session, Wednesday’s stocks continued to experience volatile trading. The main average spent the day bouncing back and forth across the unchanged line again.

The main average ended the final mixed day. The Nasdaq fell 9.54 points (0.1%) to 13,688.84, while the Dow rose 16.02 points (0.1%) to 33,446.26 and the S & P 500 rose 6.01 points (0.2%) to a high of 4,079.95. Has been updated.

Unstable trading on Wall Street arose because traders were reluctant to make significant moves as they waited for a clearer picture of their short-term outlook. market..

Strong economic data has helped raise stock prices to record highs in recent sessions, but traders may be worried that the market is overbought.

JPMorgan Chase Chairman and CEO Jamie Dimon said in an annual letter to shareholders that valuations were “quite expensive,” but noted rapid growth over the years. Economy You can justify the current price.

“Excessive savings, new stimulus savings, huge deficit spending, more quantitative easing, new potential infrastructure bills, successful vaccines, and euphoria towards the end of the pandemic have put the US economy on. It’s likely to be booming, “Dimon wrote. “This boom can easily occur by 2023, as all spending could grow well until 2023.

“The equity market is looking ahead and is likely to be pricing not only in the booming economy, but also in the technical factors that cause much of the excess liquidity to flow into equities,” he added. Added.

Traders also looked at the minutes of the Federal Reserve Board’s latest monetary policy meeting, but the central bank only reiterated that it was unlikely to change its ultra-loose monetary policy soon. ..

Participants at the March meeting acknowledged an improvement in the medium-term outlook for real GDP growth and employment, but believe that uncertainty surrounding that outlook continues to grow.

The Fed reiterated that it could take “a while” for central banks to consider changing their monetary policy stance, as economic indicators are still below pre-pandemic levels.

On the US economic side, the Commerce Department released a report in February showing that the US trade deficit expanded more than expected.

The Commerce Department said the trade deficit expanded from the revised $ 67.8 billion in January to $ 71.1 billion in February.

Economists expected the deficit to grow from $ 68.2 billion, which was first reported last month, to $ 70.5 billion.

With more than expected growth in February, the size of the US trade deficit reached a record high.

Sector news

Most of the major sectors showed modest movements on the day, contributing to the lack of vibrancy near the wider markets.

Biotechnology stocks showed a significant downtrend, but the NYSE Arca biotechnology index fell 2.5%.

FibroGen (FGEN) has down the biotechnology sector by 43% after biopharmacy companies have provided the FDA with specific pre-disclosure clarifications regarding the treatment of kidney disease Roxadastat.

Significant weaknesses were also seen among chemical stocks, as evidenced by the 1.8% drop in the S & P Chemical Sector Index. The index finished the previous session at a record high.

Gold and airline stocks also showed a marked downtrend, but retail and natural gas stocks showed modest strength on the day.

Other markets

In overseas trading, the stock market in the Asia-Pacific region fluctuated in the trading on Wednesday. Japan’s Nikkei 225 Index rose 0.1%, while China’s Shanghai Composite Index fell 0.1%.

The major European markets also ended the day mixed. The UK’s FTSE 100 index rose 0.9%, while the French CAC 40 index closed just below the unchanged line and the German DAX index fell 0.2%.

In the bond market, government bonds were almost flat and showed a lack of direction before closing. Since then, yields on benchmark 10-year bonds, which move in the opposite direction of price, have fallen to 1.653% below the basis point.

Future outlook

A report on unemployed claims could get a lot of attention every Thursday, and traders could also look at Federal Reserve Chairman Jerome Powell’s remarks during a debate on the International Monetary Fund on the world economy. There is sex.

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US stocks haven’t changed much after the next slump session

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