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 stocks inch down due to fears of trade and acceleration of inflation
On Tuesday, Wall Street headed south. It took place due to the fact that investor concerns over the lack of progress in China-US trade talks as well as soaring profits of American government bonds after data on retail sales pointed to a potential acceleration of inflation in the United States.
The United States and China are still extremely far apart in tackling a trade dispute, as some financial analysts told before the highly anticipated second round of negotiations on trade in Washington.
As a matter of fact, retail sales in the United States tacked on up to 0.3% in April having soared approximately 0.8% in March. That’s what the Commerce Department told on Tuesday.
At the same time, the jump in basic retail sales pointed to a probable acceleration in consumer spending surge after a steep slowdown in the first quarter.
After the publication of economic data, the revenue of indicative 10-year US state bonds tacked on to an outcome of 3.058%. It appears to be the highest result since July 2011.
As for eleven major S&P sectors, all of them were caught going down.
Home Depot Inc went down 1.4% after the largest American chain of stores for the sale of tools for repair as well as building materials reported on comparable sales, which didn’t manage to reach the reading many market participants had hoped for.
In addition to this, the shares of the company's smaller competitor, Lowe's, went down by up to 0.6%.
The Dow Jones index headed south about 0.74% coming up with a reading of 24,715.17. Besides this, the S&P 500 index inched down 0.66% ending up with 2.712.02. As for the Nasdaq Composite index, the given index decreased 0.83% reaching about 7.349.45.
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!
WTI oil prices jumped up after Donald Trump’s 2 tweets
Today the US nonfarm payroll data will be reported that could cause fluctuations of the market.
WTI was at $20 per barrel just in the beginning of the day. Currently - above 25$.