Jakarta, CNBC Indonesia – The stock exchange of the United States (US) opened to fall into the red zone on Monday (29/3/2021), following the sale of banking shares that were reportedly hit by margin call.
The Dow Jones Industrial Average dropped 106.9 points (-0.3%) at 8:30 am local time (20:30 WIB) and 15 minutes later receded to a minus 14,7 points (-0,04%) ke 33.058,17. The S&P 500 is down 8,1 points (-0,2%) ke 3.966,42 and the Nasdaq came down 30 points (-0,23%) ke 13.108,75.
Shares of ViacomCBS and Discovery fluctuated, even though they had strengthened in the pre-opening session. Both are believed to be affected by the liquidation of the position of Archegos Capital Management, as reported by CNBC International.
At the opening, Discovery’s shares jumped more than 2% while ViacomCBS fell 1.4%. Both media shares fell by 27% per share as a result of the selling action last Friday. On the other hand, Boeing shares jumped 3% after Southwest Airlines reportedly ordered 100 737 Max jets with 30 of them arriving in 2022.
However, massive selling has hit banking stocks. Credit Suisse dropped 13% after admitting hit forced sell (forced sale) for his position in short selling (sell empty). Nomura’s shares also fell nearly 15%. Goldman Sachs shares plunged more than 3% and JPMorgan Chase fell 1.4% after the yield (yield) US government bonds weakened slightly.
“Even though some fund managers are entangled in this problem, we do not see that the trade accident will put pressure on the financial system as a whole, leading to defaults of other parties,” said Bespoke Investment Group, in a research report quoted as saying. CNBC International.
On Friday, the three major US stock indexes rallied, with the Dow rallying for 450 points. The S&P 500 index rallied 1.7% to hit a new record high, while the Nasdaq jumped 1.2%. Throughout March, the Dow and S&P 500 jumped by 6.9% and 4.3%, respectively, while the Nasdaq was down 0.4%.
Investors are monitoring the progress of US President Joe Biden’s infrastructure stimulus plan, which has added up to US $ 3 trillion, and the details will be announced during his working visit to Pittsburgh on Wednesday. White House Secretary Jen Psaki on Sunday said the plan was divided into two: first, related to infrastructure; and second, related to health services.
Wall Street will be off to commemorate Good Friday. The market was watching March employment data which according to a Dow Jones poll led to an estimate of 630,000 people hiring new jobs, bringing the unemployment rate to 6% from 6.2% initially.
CNBC INDONESIA RESEARCH TEAM
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