Wall Street closed mixed this Monday.
The Dow Jones cut 0.30% or 106.66 points and stood at 35,101.85, while the S&P 500 lost 0.09% or 4.17 points, to 4,432,35.
On the other hand, the Nasdaq composite index, bringing together the leading technology companies, advanced 0.16% or 24.42 points, to 14,860.18.
The New York stock market fell from the all-time highs on Friday, given the rebound in covid-19 cases due to the spread of the delta variant. It particularly affected the energy sector, which slipped by 1.48%, coinciding with the oil market’s bad streak for a week.
Real estate declined by 0.42%, the industrial sector lost 0.4%, and the technology dropped by 0.35%.
In contrast, the healthcare companies added 0.38% and essential goods companies advanced by 0.32%.
The nonfarm payrolls report, released Friday, showed a net 943,000 new jobs were created last month. Meanwhile, average hourly wages expanded by 4% from last year to just more than $30.50. The data triggered bets the Fed would begin decreasing the pace of its $120 billion in monthly bond purchases. At the same time, the central bank could increase interest rates.
US inflation data is the last obstacle
Wall Street is waiting for new inflation data this week. With last week’s employment data, this news could determine when the Federal Reserve begins to withdraw its monetary stimulus.
Among the 30 Dow Jones stocks, the biggest losers were Chevron yielding 1.72%. Meanwhile, UnitedHealth slipped by 1%, and Amgen lost 0.98%.
As for the biggest increases, Walgreens hiked by 0.72%, and Goldman Sachs added 0.59%.
Analysts state that one or two 5% pullbacks are typical every year, even during a bull market. And it is likely to happen sometime soon.
David Kostin at Goldman Sachs wrote that the virus’s path and its economic impact are challenging to predict. Later in the year, ambiguity around fiscal and monetary policy will likely provoke volatility.
Nikkei resumes adjusting prices
The Tokyo Stock Market advanced this Tuesday, driven by the good results of Japanese companies and the favourable data for July in the labour market of the United States.
The Nikkei gained 0.24% or 68.11 points to stand at 27,888.15 integers.
The Topix advanced by 0.36% or 6.94 points to 1,936.28 units.
The transportation and pharmaceutical sectors received significant gains.
Lasertec, the manufacturer of components for semiconductors, brought together the highest volume of operations of the day. However, its shares fell by 0.78%. It was followed by Nintendo, the developer and distributor of video games, which also lost 3.05%.
Telecommunications giant Softbank raised by 0.90%, while automaker Toyota expanded by 0.38%.
Meanwhile, Sony fell by 2.50%.
Pharmaceutical Shionogi, currently developing a national vaccine against Covid-19, gained 6.55%.
During the Olympic Games, the number of new coronavirus infections increased dramatically in Japan. The government expanded the state of emergency to a total of 6 prefectures. However, the highly infectious Delta strain has multiplied.
The number of Covid-19 infections stood at 1359 at the time of the opening of the Olympic Games. As of August 5, it reached 5042, the highest number ever.
At the moment, Japanese stocks depend on the domestic situation and development of the coronavirus pandemic.
0 (0 votes)
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.