Friday’s session on Wall Street ended with slight gains. Only the Nasdaq index fell, with its worst week since March 2020. Investors analyze the latest economic data and tensions in relations between the governments of the largest economies in the world.
Dow Jones Industrial closed 0.48 percent. and amounted to 27,665.64 points, the S&P 500 increased by 0.05 percent. and amounted to 3,340.97 points. Nasdaq Comp. it went down 0.60 percent to 10,853.54 points. It was the worst week for the index since March, as global stock markets plunged after sharp declines amid concerns over the effects of the coronavirus pandemic.
“Global stocks have risen in recent months in anticipation of an economic recovery from the lifting of restrictions, but as fall (northern hemisphere) begins, people wonder if the number of coronavirus infections could increase,” said Kozo Koide, chief economist at Asset Management One .
“The next few sessions will be crucial to estimate the scale of the potential correction and the bulls will look for signs of positive divergence on the charts as the major indices approach their 50-day moving averages,” added Ken Berman, Gorilla Trades strategist.
The tech sell-off began Friday after unofficial information from Bloomberg that SotfBank was considering changes to its options trading strategy. Last week, SoftBank was revealed to be the real shark on the Nasdaqu, having spent billions of dollars buying stock options, betting on Big Tech gains.
Peloton’s quotations rose by 3.5%. The company said in its quarterly report that earnings per share were 27 cents against an expected 10 cents.
Oracle gained 5 percent during the day. The company’s adjusted revenues in the first half of the year amounted to USD 9.37 billion, compared to the market consensus of USD 9.19 billion.
Zumiez shares grew over 14 percent. In Q2, earnings per share were $ 1.01 against an expected 20 cents.
On Thursday, the US Senate approved the Republican draft stimulus package of approximately US $ 500-700 billion by 52 to 47 votes, which was not enough to exceed the 60-vote limit needed to send the bill for further work. All Democratic senators voted against the Republican proposal. The Democrats’ project assumes spending $ 2.2 trillion in the economy.
Due to the breakdown of party negotiations on August 7 and the lack of political will for further meetings, the chances of adopting another round of aid before the November presidential elections are decreasing every day.
Analysts warn that without fiscal stimulus, household incomes will be under pressure in the final months of 2020, which in turn will translate into lower consumer spending.
Another problem for the US economy is lower consumption due to the epidemic threat.
By the second half of August, 130 million Americans said they avoid eating in restaurants, according to the latest US Census Bureau study.
“The recovery at the moment is sensitive and without additional stimuli it will be more susceptible to negative risk factors for a worsening of the situation. There is no doubt that the full expiry of unemployment benefits will affect household incomes and thus reduce consumer spending, said Gregory Daco, chief US economist at Oxford Economics.
Chinese authorities said Friday that they had imposed restrictions on staff at the US embassy and their consulates in mainland China and Hong Kong. These are retaliations in response to US measures announced in early September.
Ministry spokesman Zhao Lijian said the United States should “correct its misconduct immediately” and called for it to back down from its earlier decisions. “These actions by the US seriously violated international law and the basic standards of international relations,” the spokesman said.
US President Donald Trump said Thursday there will be no extension of the deadline he has set for the sale of TikTok until September 14.
Consumer prices (CPI – consumer price index) in the US increased by 0.4% in August. in terms of m / m, and y / y increased by 1.3 percent. +0.3% expected. mdm and +1.2 percent. yyyyy
The number of confirmed coronavirus infections in the world has exceeded 28 million in the last 24 hours, according to the Bloomberg report. More than 909,000 people died from Covid-19 in seven months of the pandemic. people.
1,004 people infected with SARS-CoV-2 died Thursday in the US, according to a study by Johns Hopkins University in Baltimore. The United States is the country most affected by the coronavirus outbreak in the world. According to data from Hopkins University, the death toll in the US is 191,732, and SARS-CoV-2 has been infected by nearly 6.4 million people. According to forecasts by the University of Washington in Seattle, about 410,000 people will die from Covid-19 by January. Americans.
(PAP Biznes)
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