Jakarta, CNBC Indonesia – After briefly strengthening in early trading, the United States (US) stock market or Wall Street closed lower at the close of trading Friday (16/7/2021) local time, amid investor concerns about the spike in Covid-19 cases as the spread of the Corona virus spreads. Delta.
The Dow Jones Industrial Average fell 0.86% to 34,687,852, then the S&P 500 index fell 0.76% to 4,327,110. The tech-heavy Nasdaq index also fell 0.80% to 14,427,240. Tech giants, such as Amazon and Apple, which fell more than 1% to weight this index. In addition, Nvidia shares plunged 4.2%.
Meanwhile, the S&P technology sector index also lost nearly 1%. In contrast, the S&P utility sector index rose 1%, while the S&P real estate index edged up 0.1%.
Later, Moderna Inc shares jumped 10.3% to a record high after the S&P Dow Jones Index said the drugmaker would join the S&P 500 index in early trading on July 21, replacing shares of Alexion Pharmaceuticals.
In contrast to Moderna’s shares, Didi Global Inc’s shares fell 3.2% after China sent state officials from at least seven departments to the ride-hailing giant’s headquarters for a cybersecurity review.
In the week, the Dow Jones is down 0.52%, while the S&P 500 is down 0.97% and the Nasdaq is down 1.87% over the same period.
According to Reuters, On Thursday, Los Angeles County said it would reimpose the mask requirement this weekend. On Friday, public health officials said US coronavirus cases were up 70% from the previous week, with the death toll up 26%.
“Covid is starting to affect markets, ironically, for the first time since last summer, when trading reopened,” said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma.
So far this week, investors’ concerns about the recent spike in inflation have been offset by assurances from US Federal Reserve Chairman Jerome Powell that the price spike is temporary.
Apart from Powell, US Treasury Secretary Janet Yellen also helped balance market sentiment after suggesting that high inflation is likely to ease in a few months but that caution should be maintained in responding to it.
“I’m not saying that this is a one-month-old phenomenon. But I think in the medium term we will see inflation weakening back to normal levels,” Yellen said.
Throughout the week ahead, investors will be watching a number of large corporate second-quarter earnings reports, such as reports from Netflix, Johnson & Johnson, Verizon Communications, AT&T and Intel.
Previously, data from the Ministry of Commerce showed Retail sales per June in the US reported growing 0.6% on a monthly basis, or 180 degrees reversed from economists forecast in a Dow Jones poll that forecast a decline of 0.4%. If automotive sales are excluded, retail sales growth will reach 1.3% or much better than market expectations of 0.4%.
CNBC INDONESIA RESEARCH TEAM
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