The fall in banks and industrial firms pushed Wall Street stocks to a slight loss on Wednesday after the initial rise disappeared in the last 30 minutes of trading. Stocks backed by hordes of online retail investors, the so-called “meme” stocks, have once again become volatile.
The S & P 500 fell 0.2%, offsetting the slight rise from the previous day. The gradual movement of the Benchmark Index this week has made good progress towards the first weekly decline in three weeks. The Dow Jones Industrial Average fell 0.4%, but the Nasdaq held up slightly and eventually fell 0.1%.
Government bond yields have fallen. At the end of Tuesday, yields on 10-year Treasuries fell from 1.52% to 1.49%. Lower yields have generally put a burden on banks. Banks rely on higher yields and imposing more favorable loan interest rates. JP Morgan and Citigroup fell 1.2%.
Several healthcare companies have made strong profits. Merck rose 2.3% after announcing supply agreements between the US and Canada for potential COVID-19 treatments. AbbVie rose 1.5% after announcing a partnership with Caraway Therapeutics, which develops treatments for Parkinson’s disease and other neurodegenerative diseases.
Overall, the S & P 500 fell 7.71 points to 4,219.55. The Dow lost 152.68 points to 34,447.14, but the Nasdaq Composite abandoned the early rise and dropped 13.16 points to 13,911.75. The tech-focused index has been raised by the same big tech company, which has generally pushed high over the past 18 months. Microsoft was up 0.4% and Amazon was up 0.5%.
SME stocks, which exceeded the market as a whole, also fell this year. The Russell 2000 Index decreased by 16.63 points, or 0.7%, to 2,327.13.
Investors continue to pay considerable attention to inflation. China’s producer price index, which measures prices for raw materials and services, rose 9% year-on-year in May, the fastest rise since 2008, exceeding analysts’ expectations. Soaring prices for oil and other commodities and manufacturing parts such as semiconductors were the main drivers of the soaring producer prices.
Apart from soaring prices of raw materials and fuel required for manufacturing Factory struggles to keep up with demand As the pandemic recedes in many places. This has raised the price of everything from food to daily necessities.
Investors will look closely at US inflation data on Thursday to see how it affects ultra-low interest rates and other market-supporting policies.
Markets have been relatively restrained over the past few days, and investors have determined whether inflation is temporary or more permanent, as the Federal Reserve Board thinks. We are analyzing the data to do.
The CPI release released by the Ministry of Labor on Thursday will be added to the discussion, especially just before the next Fed’s next interest rate policy meeting next week.
“Is it temporary or is the Fed lagging behind?” Said Sal Bruno, Chief Investment Officer of IndexIQ. “It will be a lot of discussion with people reading how we should go tomorrow.”
Elsewhere in the market, equity volatility accepted by investors using online forums such as Reddit continued another day on Wednesday. Clover Health fell 23.6% and AMC Entertainment fell 10.4%. Wendy’s soared 25.9% the day before and then fell 12.7%.
Original “Meme” stock, Game stopSaid that after Wednesday’s Closing Bell, it invited two Amazon veterans as the new CEO and Chief Financial Officer to support the long-awaited digital transformation. Reported a lower quarterly loss than the previous year. The company’s stock fell 3% in after-hours trading.
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The US index ends at a low price.Increased online favorite volatility | Business
Source link The US index ends at a low price.Increased online favorite volatility | Business