Three Major Indices ended market lower while Treasury bond closed higher
The three major market indices end up with losses as the market closed this Thursday. Led by NASDAQ – the tech heavy-weight, the sell off in the market was a result of investors looking at Treasury bonds as Fed Chief Powell indicated on his speech that near zero interest rates is to be maintained for the next least 3 years.
NASDAQ is down by 3% or by 409 points which is their worst trade session in the last 3 weeks, followed by S&P 500 by 58.66 points or 1.48%. Dented demands largely affected market value of technology stocks. Dow Jones Industrial Average is also down by 0.46%, or 157 points, despite going smoothly for the first half of the day.
On the other hand, 10 Year Treasury Notes topped 5.42% at market close, which is in response to the FOMC’s (Federal Open Market Committee) declaration. The 30 Year Treasury Bonds also gained 1.6% for the same reason. This is considered its biggest improvement since the start of the year.
Oil prices dwindle down by 7.1% as the fear of lowering demand continues. Oil prices are now at a 5-day decline, as opposed to its unstoppable rise since January of this year. Market is largely affected by COVID-19 outbreak, specially in the European area, where people are advised not to go outside causing chain reaction to suppliers. Though vaccine rollout is underway, doubts about quick recovery are still present which reflects on the market.
Biggest winner for today belonged to William-Sonoma (WSM) with a whooping 18% gain. Key earners include Five Below (FIVE) and Upstart Holdings (UPST).
Here’s a quick summary of market movements today:
• Dow Jones Industrial Average slipped by 0.46% to 32,862
• S&P 500 dropped by 1.48% to 3,915
• NASDAQ Composite tripped down by 3.02% to 13,116
• Brent Crude slashed by 0.34 points to 68.88
• USO crashed down by 7.64% to 40.47
• Gold price dropped to 1,732.70 after going down by 3.80
Meanwhile, US and Chinese officials initiated talks in Alaska, however, it is agreed that the opening remarks had been contentious and sharp. These two superpowers remain to be wary of each other and are not in agreement over several matters which include human rights and trades.
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