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?
US equities are suppressed by diving crude and China worries
Information is not investment advice
On Friday, the S&P 500 headed south along with equities of large technology, material and industrial companies because of dismal Chinese data as well as a dive in crude prices.
Market participants were reluctant to take on risk. As a result, the S&P technology index SPLRCT decreased by 2.2% because Apple Inc sank by 2.9% and semiconductor shares lost 2.7%.
Crude seemed braced for its longest losing marathon since 1998 because futures went down by 1% because global supply rallied and traders worried that fuel demand could speed down.
As a matter of fact, the Dow Jones Industrial Average slumped by 1.15% hitting 25,889.91. As for the S&P 500, it went down by 1.49% showing 2,765.04, while the Nasdaq Composite sank by 2.37% ending up with 7,352.35.
Besides this, the S&P energy index dived by 0.6% having lost 2.2% in the previous day's trading marathon when American crude prices actually confirmed a bear market by decreasing 20% from their most recent maximum.
10 of the 11 key S&P sectors inched down, with the sole gain being a 0.3% leap in the defensive consumer staples index.
In the face of a bitter trade clash between China and America, Chinese data disclosed that in October producer inflation decreased for the fourth straight month on receding domestic demand as well as manufacturing activity. However, car sales declined for a fourth month in a row.
The latest data on American producer prices failed to soothe fears about soaring interest rates that have hampered yields in equities stocks in 2018.
General Electric Co headed south below $9 for the first time since 2009.It occurred after JP Morgan reduced price objective on the stock from $10 to $6. Last it declined by about 8.1% hitting $8.37.
UK Prime Minister was placed in the intensive care. As a result, the British pound plummeted dramatically today.
Coronavirus pushes to recession countries one by one. This time it gets to Japan, known as one of the world’s hardest working nation.
Canadian jobs data will be announced on Thursday at 15:30 MT time.