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 stand still
On Tuesday, a three-day leap in American shares stalled because a dismal estimate from drugstore chain Walgreens Boots affected the pharma sector, while economic data did little to soothe surge worries.
The Dow Jones Industrial Average was suppressed by a 12.2% dive in Walgreens Boots Alliance Inc right after the company reduced its 2019 profit surge estimate and posted a quarterly gain, which missed experts’ forecasts.
Moreover, the S&P consumer staples index dived by 0.7%, leading dives among 9 of the 11 key S&P sectors, which tumbled. CVS Health Corp decreased by 3%, while stocks of several drug wholesalers took a hit as well.
Data disclosed fresh orders for major American capital goods decreased in February, while shipments stood still.
Eventually, core capital goods orders decreased by 0.1%.
The data showed up on the heels of a poll disclosing a sudden rebound in China's manufacturing activity as well as better-than-anticipated American numbers that push the S&P 500 to six-month peaks on Monday.
ET, the Dow headed south by 0.41% being worth 26,151.50, while the S&P 500 decreased by 0.12% hitting 2,863.72.
Furthermore, the Nasdaq Composite rallied by 0.06% ending up with 7,833.80, backed by a 2.8% leap in Facebook Inc.
Notwithstanding coming under pressure, the S&P 500 is 2.4% away from a record closing maximum in late September, restrained by trade uncertainties, the Fed’s plans to conclude monetary policy tightening, the UK’s chaotic departure from the European bloc as well as fears about corporate profit surge.
Dow Inc managed to ascend by 4.7% in its stock market debut after the spin-off from DowDuPont.
Additionally, the S&P index demonstrated 31 fresh 52-week peaks and two new lows, while the Nasdaq came up with 44 new maximums as well as 33 new lows.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
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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.
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