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09.09.2021 05:21 PM
Optimism is over: US indices falling

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US stock indices ended down on Wednesday trading. The S&P 500 lost 0.13%, the Dow Jones Industrial Average declined 0.2% and NASDAQ fell by 0.57%.

For quite a long time the investors had a positive outlook. However, a number of factors influenced the dynamics of the US stock market in the opposite direction. The situation in Afghanistan, hurricane Ida as well as the unemployment data published on Friday became such factors. At the moment, investors are not sure that S&P 500 indicator will continue to grow, although it has already increased by 20% since the beginning of the current year.

The number of vacancies in the US rose to 10.9 million in July (compared to 10.2 million in June), though analysts forecasted this reading to fall from the June level to 10.1 million rather than rise.

A summer outbreak of the Delta variant of COVID-19 resulted in fewer tourists and trips to cafes and other places of entertainment, which slowed the country's economic recovery.

Among the components of the Dow Jones indicator, Coca-Cola Co. (+1.35%), Visa Inc Class A (+1.25%), as well as 3M Company (+1.24%) and UnitedHealth Group Inc. (+1,39%) shares showed the highest gain. At the same time, Dow Inc. (-1.91%), Boeing Co. (-1,33%) shares declined.

Among S&P 500 components, Perrigo Company PLC, Global Payments Inc. and General Mills Inc. shares rose the most, gaining 8.99%, 7.19% and 4.56% respectively. Shares of Coty Inc. (-10.67%), PulteGroup Inc. (-6.05%), Freeport-McMoran Copper & Gold Inc. (-5,47%) plunged the most.

Among the components of NASDAQ, Locust Walk Acquisition Corp. shares showed the largest gains, rising by 111.93%, Helbiz Inc. shares increased 84.02%, as well as Kadmon Holdings LLC which went up 71.13%. INmune Bio Inc., Alector Inc. and Rallybio Corp. shares showed the biggest decline, losing 22.55%, 18.97% and 18.96%, respectively.

On the New York Stock Exchange, the number of shares that dropped (2,032) exceeded the number of those that gained in value (1,187). The situation is similar on NASDAQ: 2,491 stocks lost in value while 1,052 gained.

Locust Walk Acquisition Corp. shares showed unprecedented gains, increasing 111.93%, Helbiz Inc. rose by 84.02%, and Kadmon Holdings LLC added 71.13%.

The volatility index declined 0.99% to 17.96.

Gold futures were down 0.38% to $1,791.60 per troy ounce.

Bitcoin is also falling: it lost 1.9% yesterday and dropped 10% the day before.

The profitability of ten-year US government bonds fell to 1.333%, which was the biggest drop in the last three weeks.

Meanwhile, natural energy prices rose. Brent crude oil added 1.27% and reached $72.60 per barrel. The cost of natural gas increased by 7.57% to $4.9140 per million BTU.

Anastasia Kravtsova,
Analytical expert of InstaForex
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