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?
Wall Street dives due to the tech sector amid worries of a trade war
On Tuesday, the American stock market inched down following Monday’s session because market participants sold the shares of the technology sector amid rekindled concerns of a trade war.
At the same time, the major indices traded below their 200-day moving averages, and the S & P 500 index concluded below this key technical level for the first time since the referendum in the United Kingdom as for withdrawal from the European Union in June 2016.
The first trading day of the second quarter started with a general sale, concentrated in the shares of technology companies as well as enterprises of the secondary goods and services sector.
Microsoft, Tesla and Amazon were affected by China's retaliatory trading measures, uncovered on Sunday.
At the close of the New York Stock Exchange, the Dow Jones index headed south 1.9% hitting 23,644.19, the S & P 500 index sank 2.23% being worth 2,581.88, while the Nasdaq Composite index inched down 2.74%, showing 6.870.
Equities of Amazon.com put the greatest pressure on the S & P 500, diving 5.2% because of onlging attacks by Donald Trump on the online retailer.
All 11 main industry indices of the S & P 500 completed trades in negative territory, with the largest losses incurred by the index of the sector of minor goods and services as well as the technological sector, sagging by respectively 2.8% and 2.5%.
Pressure on Nasdaq was provided by shares of Microsoft, Intel, Apple Inc, Facebook and also Alphabet .
Tesla Inc's equities concluded down 5.1%after the company posted output of 2,000 Model 3 cars a week, which is below the objective of 2,500 vehicles. Equities of the insurance company Humana Inc managed to ascend 4.4% on news that it’s currently negotiating with Walmart to expand the partnership or a probable purchase by its retailer.
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 $20 per barrel just in the beginning of the day. Currently - above 25$.