Extending the sluggish performance seen in the previous session, stocks showed a lack of direction in the course of Wednesday’s trading day. The main average spent days bouncing back and forth on the unchanged line.
Currently, the main average is almost flat. The S & P 500 rose 0.38 points to less than a tenth percent at 4,074.32, while the Dow fell 30.52 points or 0.1 percent at 33,399.72 and the S & P 500 fell 8.07 points or 0.1 percent at 13,690.31.
Unstable trading on Wall Street arises because traders are reluctant to make significant moves as they wait 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 may also be looking forward to the release of the minutes of the Fed’s latest monetary policy meeting. This could shed more light on the interest rate outlook.
Fed officials expect interest rates to remain at near zero levels until 2023, according to estimates provided after the meeting, but the federal funds rate market is in the wake of recent bright economic data, 2022 12 We expect interest rates to rise in the month.
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.
The deficit expanded as exports fell 2.6% to $ 187.3 billion and imports fell 0.7% to $ 258.3 billion.
Most of the major sectors showed modest movements on the day, contributing to poor performance in a wide range of markets.
Biotechnology stocks are showing a significant downtrend, while the NYSE Arca biotechnology index is down 2%.
Significant weaknesses have also emerged among chemical stocks, as reflected in the 1.6% decline in the S & P Chemical Sector Index.
Airline, gold and housing inventories also fell sharply that day, but retail inventories show some strength.
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 rose slightly during the session. After that, the yield on the benchmark 10-year bond, which moves in the opposite direction to the price, drops by 1.7 basis points to 1.639%.
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US stocks that are almost unchanged in daytime trading
Source link US stocks that are almost unchanged in daytime trading