New stock market decline in the US – rise was exchanged for a substantial fall
Friday’s initial gains turned out to be nothing more than a sigh of relief. During the evening, the American stock markets fell heavily, thus putting an end to another weak week.Updated: September 2, 2022, 10:09 p.mPublished: September 2, 2022, 10:00 p.mThe American stock exchanges rose on a broad front in early trading on Friday. The afternoon employment report, which showed that unemployment in the US unexpectedly increased slightly last month, made the market start to believe in less aggressive interest rate increases going forward, which gave a boost to the stock market. During the evening, however, reality caught up and the indices turned sharply down. Steve Sosnick, chief strategist at Interactive Brokers, described the initial gains as a “relief rally” – but at the end of the day, the number changes nothing. “It’s exactly as expected. There’s nothing here that takes a 75-basis rate hike off the table,” he told CNBC. At the close, the S&P 500 was down 1.1 percent after showing up 1.2 percent earlier in the evening. At the same time, the Dow Jones industrial index retreated 1.1 percent, while the technology-heavy Nasdaq fell 1.3 percent.“Investors are reconsidering jobs report and probably leans towards the fact that there is no clear end to the rate hikes,” said Rick Meckler, partner at Cherry Lane Investments, according to Reuters. US stock markets thus fell four out of five trading days this week, and the weekly conclusion for the broad S&P 500 was approximately minus 3.3 percent. It was the third consecutive negative week. At the same time, the market does not seem to be too uncertain about what is to come. The so-called volatility index Vix, also called the fear index, rose only marginally during the evening after reaching the lowest levels in a week. During the evening, there was also news that risks putting further pressure on the European energy market. The Russian gas giant Gazprom will not resume gas deliveries through Nord Stream 1 after the planned maintenance stop tomorrow Saturday when a leak that needs to be repaired has been discovered.On the stock exchange heard the big tech companies to the losers. Apple, Microsoft and Alphabet all fell around 1.5 percent, while Facebook’s owner Meta retreated just over 3 percent. The electric car manufacturer Tesla also fell back 2.5 percent. Even the normally defensive sectors retreated today. Among pharmaceutical stocks, Johnson & Johnson retreated 1.6 percent, while Merck fell 1.1 percent, and grocery companies such as Coca-Cola, McDonald’s and Walmart all retreated around 1 percent. Oil prices rose slightly, pushing the energy sector against the tide. Exxon Mobil traded up just under 2 percent, while Chevron rose 1.5 percent. Another stock that went against the trend was the sports fashion company Lululemon, which traded up 6.7 percent after its quarterly report, where the result was better than expected. The company also raised its forecast.The interest on it the American ten-year bond fell 6 points to 3.20 percent during the evening. The American investors are now taking a three-day weekend as the stock market is closed on Monday due to Labor Day.