Jakarta, CNBC Indonesia – The United States (US) stock market opened slightly higher on Tuesday (9/21/2021), following the buying action during the correction (buy on weakness) investors.
The Dow Jones Industrial Average rose 234 points (+0.7%) at 08:30 local time (20:30 WIB) and after 30 minutes it reversed to minus 91.7 points (-0.27%) to 34,669.29. The S&P 500 index grew 9 points (+0.2%) to 4,452.01 and the Nasdaq fell 12.35 points (-0.08%) to 15,025.41.
Asian markets tend to be stable after being pressured by concerns over the Evergrande Group case. The Chinese government is predicted not to allow the property company’s default case to drag on until it leads to a crisis.
Oil and gas shares ConocoPhillips jumped 2% in the opening session, followed by chipmakers, banks and other energy stocks. Uber shares jumped 6% after raising its performance outlook for the third quarter of 2021.
Market participants are anticipating the results of the meeting of the US central bank (Federal Reserve / The Fed) to be announced tomorrow, as well as their quarterly economic projections which are popularly called the dot plot. Fed Chairman Jerome Powell has said that tapering (reduced injection of liquidity into the market) could start this year.
We’ll see if there’s evidence that the Fed’s dot plot doesn’t come up with content that scares the market… we’ll also have to see if there’s any evidence that the Chinese government will take action [terkait Evergrande],” said Yung-Yu Ma, Head of Investment Planning at BMO Wealth Management, as quoted by CNBC International.
The second largest property developer in China (by sales) namely China Evergrande Group is currently facing the risk of default (default) interest on debt worth US$ 83 million as of Thursday, according to S&P Global Ratings.
Concerns about the risk of spreading the delta variant of the Covid-19 virus are also starting to subside, after Johnson & Johnson reported that its vaccine injections are up to 94% effective. Global pharmaceutical stocks opened up 0.5%.
September has historically been a volatile month especially with the S&P 500 index rallying 16% so far this year. However, several investment planners on Monday warned that the correction that occurred that day was too deep and opened up buying opportunities.
On Monday, the S&P 500 index dropped 1.7% for its worst correction since May 12. The Dow Jones Industrial Average plunged 614 points (-1.8%), for its worst daily correction since July 19. Meanwhile, the Nasdaq slid 2.2%.
CNBC INDONESIA RESEARCH TEAM
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