U.S. Stocks hit six-week low as tech slide accelerates: Markets wrap

By: |
September 19, 2020 9:32 AM

Investors are facing a conflict between this incredibly high level of uncertainty but also a fear of missing out, fear the markets could continue to move higher.

RIL, bharti airtel, stocks in focusNifty futures were trading 21.70 points or 0.19 per cent up at 11,264.20 on Singaporean Exchange.

Bloomberg: Technology shares pushed U.S. stocks to a six-week low as investors searched for new catalysts to give direction to global markets. The dollar strengthened and Treasuries were little changed.

The S&P 500 fell for a third day after fluctuating between gains and losses ahead of a so-called “quadruple witching” on Friday, a quarterly event that typically fuels trading and sometimes volatility as large derivatives positions roll over. Losses accelerated after the benchmark index fell below its 50-day moving average. The Nasdaq 100 also closed below that technical threshold. Oracle Corp. edged lower after the U.S. said it will ban some transactions over TikTok, and it would be shut down unless a deal is concluded by Nov. 12. Apple Inc. and Microsoft Corp. weighted on the Nasdaq Composite.

“Investors are facing a conflict between this incredibly high level of uncertainty but also a fear of missing out, fear the markets could continue to move higher,” said Lauren Goodwin, economist and multi-asset portfolio strategist at New York Life Investments. “That tension between uncertainty and FOMO is palpable.”

The Stoxx Europe 600 Index fell, weighed down by declines in travel and leisure shares on the threat of wider restrictions to stem the spread of coronavirus. Although activity on major gauges was modest, there were bigger moves in single-name stocks swept up in a bout of mergers and acquisitions.

Investors are on the lookout for more U.S. fiscal stimulus after the Federal Reserve indicated this week that interest rates will stay low for years to come. Data continues to show a patchy recovery path around the world as coronavirus infections surge. France’s daily cases rose by more than 10,000 to the highest since the end of lockdown in May.

“The market is somehow uninspired following recent central bank meetings,” said Robert Greil, chief strategist at Merck Finck Privatbankiers AG. “It is waiting for the next support step, be it from their side or regarding the U.S. fiscal program to be agreed finally.”

Elsewhere, gold climbed. Crude oil traded around $41 a barrel and finished up on the week.

These are some of the main moves in markets:

Stocks

The S&P 500 Index declined 1.1% to 3,319.27 as of 4:01 p.m. New York time, the lowest in more than six weeks on the largest drop in more than a week.

The Dow Jones Industrial Average declined 0.9% to 27,657.29, the lowest in more than a week on the biggest drop in more than a week.

The Nasdaq Composite Index dipped 1.1% to 10,793.28, the lowest in more than five weeks.

The Nasdaq 100 Index sank 1.3% to 10,936.98, the lowest in more than five weeks.

The Stoxx Europe 600 Index sank 0.7% to 368.78, the largest decrease in more than a week.

Currencies

The Bloomberg Dollar Spot Index increased 0.2% to 1,163.36, the first advance in more than a week.

The euro was little changed at $1.1849.

The British pound declined 0.4% to $1.2922, the first retreat in a week and the biggest drop in more than a week.

The Japanese yen appreciated 0.1% to 104.59 per dollar, hitting the strongest in more than six months with its fifth straight advance.

Bonds

The yield on 10-year Treasuries increased one basis point to 0.69%.

The yield on 30-year Treasuries gained one basis point to 1.45%.

Germany’s 10-year yield advanced one basis point to -0.49%, the biggest rise in more than a week.

Britain’s 10-year yield fell less than one basis point to 0.183%, the lowest in a week.

Commodities

West Texas Intermediate crude decreased 0.2% to $40.90 a barrel.

Gold strengthened 0.3% to $1,950.87 an ounce.

Natural gas increased 1.4% to $2.07 per mmbtu

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1U.S. Stocks: 3400 level in S&P 500 becoming key technical support
2U.S. stocks rise, dollar falls, as stimulus hopes revive
3U.S. Stocks: Bulls are back in the Nasdaq and options are aflutter