Stock prices plummeted on Thursday as traders became cautious following a series of record highs in the US major indices. The Dow was 34,280.51, 401 points, or 1.2% off. The S & P 500 was down 1.2%, with about 95% of the index’s stocks down.
The Nasdaq fell 1.4% as tech companies suffered the most losses. Bond yields continued to fall as traders worried that the Federal Reserve Board would begin to withdraw some of its measures to support the economy.
“We haven’t made any corrections this year and are planning to make corrections, but the corporate fundamentals are so strong that earnings should continue to be positively surprised for the rest of the year, so we’ll buy a downturn in the stock market,” said Indy. Chris Zaccarelli, Chief Investment Officer of the Pendent Advisor Alliance, said in an email.
There were few unemployed claims from the Ministry of LaborAt 373,000, adds to concerns about a potential slowdown in the US labor market.
Wall Street’s decline reflects action abroad, with global stock markets plunging after the Fed discussed the possibility of easing US economic stimulus.Japan was preparing to declareDuring the Olympics due to a surge in infectious diseases.
London and Frankfurt fell by more than 1%, but Shanghai, Tokyo and Hong Kong also fell. Also on Thursday, South Korea reported a daily record increase in 1,275 new coronavirus infections.
Minutes of the latest Federal Reserve Board meeting in June show a bright outlook for the US economic recovery, when and how board members can reduce monthly bond purchases injecting money into the financial system. Showed that we talked about what we could do.
“There is uncertainty about the pace of decline in unemployment, as the first significant rise from the economic resumption is primarily taken into account,” IG’s Yeap Jun Rong said in a report. “The Fed’s minutes emphasize that we are waiting for much to be seen in future data to guide policy withdrawal.”
Stock prices plummet due to concerns over global economic recovery
Source link Stock prices plummet due to concerns over global economic recovery