Wall Street experienced a sharp decline, reflecting a global trend of market declines following discouraging data on China’s economy. The S&P 500 dropped 1.2% or 1.86 points, closing at 4,437.86 on Tuesday. The Dow Jones Industrial Average fell 1% or 361.24 points, ending at 34,946.39. The Nasdaq composite decreased by 1.1% or 157.28 points, closing at 13,631.05. On a positive note, a separate report showed that sales growth at US retailers has accelerated, raising hope for the economy’s ability to avoid a recession. However, this also poses a threat as it may lead to the Federal Reserve maintaining high interest rates to combat inflation.
The initial expectations for China’s economy were optimistic, with hopes that it would bounce back after the removal of anti-COVID restrictions, thereby boosting the global economy. However, China’s recovery has faltered, leading to unexpected actions such as a key interest rate cut and the omission of a report on unemployment among younger workers. Concerns about the repercussions for the global economy are now weighing heavily on Wall Street, which has already been experiencing setbacks in August.
The price of a barrel of US crude oil fell by 2.1% to $80.76, causing prices to drop for Brent crude and copper as well. Energy and raw-material producers’ stocks were among the major losers in the S&P 500. Exxon Mobil was particularly affected, with a 2.6% drop that contributed significantly to the index’s decline. Banks also experienced losses, continuing a downward trend that began with the high-profile failures of several banks earlier this year as a result of increased interest rates. Discover Financial Services recorded the largest loss, dropping by 9.4% after its CEO announced immediate resignation.
Despite the overall market declines, some companies reported better-than-expected corporate profits, which helped limit the losses. Home Depot, for instance, gained 0.7% after surpassing expectations for both revenue and profit. However, the company acknowledged the impact of higher interest rates, expressing concerns about certain types of major projects.
(Read more stock market stories.)
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
