The Dow Jones Industrial Average could not stay in positive territory and fell 0.75% to 35,601.98 points. Recall that on the 8th, for the first time in his history, he won back 36,565.73 points.
Standard & Poor’s 500 was also in the red, dropping 0.14% to 4697.96 points. During the session, he set the highest value in history – 4717.75 points.
On the other hand, the technological Nasdaq Composite is valued at 0.40% and closes at 16,057.44 points, which is a record close – it took less than three months to move up a thousand points in closing value and debut on a close above 16 thousand points. … During intraday trading, it reached a new all-time high of 16,121.12 points.
Growing concerns about a new wave of covid pandemic in Europe, which could lead to new “lockdowns” – Austria has already imposed a complete ban, and Germany seems to be preparing to go down the same path, already closing companies that are not necessary in some countries. regions of the country; and the Netherlands has also already passed a decree on early closing of bars and shops – this has led to new volatility on Wall Street.
This scenario made investors more cautious, while those quoted in cyclical sectors became more sensitive to economic development and were among the hardest hit. This was the case in energy, finance and industry.
Market participants were also more cautious after two Fed members said the central bank may have to consider speeding up the removal of stimulus to the economy (called a “phasing out”) due to rising inflation.
Technology has helped keep the Nasdaq in the black thanks to the good performance of listed companies such as Tesla, Apple, Facebook and Moderna after covid-19 booster vaccines were approved by US regulators in the north. Americans aged 18 and over.
Microchip maker Nvidia has once again increased the dynamics of the technology index due to the improvement of its “forecast” for the year as a whole.
“One of the main concerns of investors about the escalation of inflation is related to the impact that higher prices could have on private consumption, a fundamental source of economic growth. Consumer confidence has only recently fallen to a ten-year low, precisely because US citizens fear a future that will bring higher interest rates, which will significantly affect the substantial costs of a significant part of the population with any type of mortgage, personal or commercial, ”emphasizes Marco Silva, Analyst at ActivTrades, in his daily analysis. to which the Negócios had access.
But if confidence is at its lowest, it is clear that consumption is showing signs of growth, he adds. “In fact, US retail sales rose 1.7% in October, higher than the 1.5% analysts had expected, while the main component, excluding the most volatile sectors, grew by 1.6%. … % against the forecast of 1%. Online sales provided an important part of the sustainability of the metrics, with a 4% increase followed by fuel costs. These data are coupled with industrial production, which increased by 1.2% while declining by -0.7%. in September pushed the bulls to slightly improve the outlook for the stock market, despite the fact that the dollar continued to strengthen, which prevented more dramatic gains in the stock market. “
However, “first of all, it is important to note from the obtained figures the desire of consumers to maintain a higher level of expenses, since in practice the increase in sales was partly due to inflation, and not to an increase in the number of products. Not all was rosy, as after Amazon warned that it would feel the impact of rising costs and lack of products on its profitability, it was WalMart’s turn yesterday to indicate that it foresees continued restrictions on product access. In other words. The terrain was bull-friendly, but without much enthusiasm, which should continue until we have a complete picture of Black Friday and Cyber Monday sales and a soap opera about the next Fed President, who may be will not be a re-appointment of Jerome Powell, ”concludes Marco Silva.
