Wall street It is falling sharply at this time on Thursday and if the tables are not turned, it is on its way to closing its worst day since June. The main US indices are in the red after their strong start to the month. Without going any further, the Nasdaq and the S&P 500 come from setting new highs and the Dow Jones to recover 29,000 points, a level lost in early February.
US President Donald Trump did not take long on Wednesday to hang up the medal and ensure that, with Democrat Joe Biden at the head of the White House, stocks would continue to fall as at the peak of the coronavirus crisis.
The lukewarm employment report ADP (prelude to the unemployment data in the US) and the warnings from the Federal Reserve (Fed) were not compelling reasons to hold back the advance of Wall Street on Wednesday.
This Thursday, initial unemployment claims they have fallen to 881,000 from 1.011 million last week and have fallen below the 950,000 anticipated by the analyst consensus. Thus, this data reaches its lowest level since the Covid-19 pandemic began.
To find an explanation for today's falls you have to look at big technology, which is collapsing. Apple falls more than 5%, Tesla does more than 6, Facebook 4%, Amazon another 4% … Although there are those who see the positive side of the debacle. "Frankly, the deeper the pullback in technology, the healthier it is for the overall market," said Alec Young, chief investment officer at Tactical Alpha LLC.
“The market was overbought, there were too many people chasing tech names. Everything is healthy. The valuations have been stretched ", qualifies the expert.
Within the macroeconomic sphere, the PMI of services in the US also stands out, which stood at 55 points in August, slightly above the 54.8 points expected by the market. In addition, investors are also taking into account the ISM non-manufacturing PMI data for August, which was in line with expectations at 56.9 points.
In political matters, Washington has asked the States to be ready to distribute the virus vaccine starting November 1. In a letter to governors dated Aug. 27, Robert Redfield, director of the US Centers for Disease Control and Prevention, stated that states "in the near future" will receive permission requests from McKesson Corp, that has been contracted with the CDC to distribute vaccines to locations including state and local hospitals and health departments.
In the raw materials market, West Texas barrel, a benchmark in the United States, is currently trading with a fall of over 2% and pays at $ 40.60. For its part, in the foreign exchange market, the euro depreciates 0.12% and changes to 1.1837%. And in the debt market, the yield of the US ten-year bond stands at 0.64%.
On the other side of the Atlantic, the Ibex and the rest of Europe go up eagerly before the good news about the vaccine. Finally, in Asia, the stock markets have closed with mixed signs as investors in the region digest the latest macro data.
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