The so-called “stock market bloodbath” has continued on Friday with major indices falling down to the lows of the last October. What's going on?
American equities slump
On Thursday, American equities headed south due to the fact that gloomy earnings reports from industrials backed fears about soaring expenses as well as the impact of levies, contributing to worries over higher borrowing costs after hawkish remarks from the Fed’s minutes.
The US-China trade clash, higher borrowing costs as well as wage pressures have appeared to be the key fear of market participants because the third-quarter earnings season gains steam, contributing to the previous week's selloff.
Those worries were manifested in Sealed Air's outcomes. As a matter of fact, the equities of this packaging firm slumped by 6.5% after downgrading its full-year revenue outlook because of higher raw material as well as freight costs.
Revenue at S&P 500 businesses are anticipated to have surged by 22% in the third quarter, which is slower compared to the previous two quarters. Of the 69 companies, which have posted o far, up to 78.3% have managed to beat expectations.
Moreover, large industrials, including 3M and Caterpillar dived 1%-2.5% and assisted to suppress the sector, making it slump by 1.1%.
The minutes of the key US bank’s September gathering, uncovered on Wednesday, disclosed that policy makers generally agreed on the necessity to keep lifting interest rates.
The Dow Jones Industrial Average declined by 0.91% hitting 25,472.71. Moreover, the S&P 500 lost nearly 0.92% being worth 2,783.38. The Nasdaq Composite dipped by 1.44% reaching 7,532.48.
The defensive utilities, real estates and consumer staples appeared to be the top-notch performers amidst the 11 key S&P sectors.
Besides this, Activision lost 7.3% after its fresh "Call of Duty" computer game earned more than $500 million for the first three days of sales, which is lower than investors had hoped for.
Philip Morris rallied by 3.7% after the Marlboro cigarette producer topped experts’ forecasts for quarterly revenue and sales.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
Will coronavirus continue keeping the markets in fear? What releases should we wait for? Find out in the news!
The British pound has increased in value over the course of the past week in line with an ongoing improvement in investor sentiment.
Economic activity in service sector in the Euro zone and the UK is on its lowest rates since 2009.
Jerome Powell made a rare appearance in the public media this Thursday. What did he bring to the audience?