Categories
Market Stock

Stock market news live updates: Stock futures rise with first presidential debate, stimulus in focus – Yahoo Finance

Emily McCormick

Stock futures drifted higher Tuesday evening as investors considered the first presidential debate and continued to eye developments among congressional lawmakers for further fiscal stimulus.

A key labor market report is also due out Wednesday morning, along with a couple highly anticipated direct listings for tech companies Asana and Palantir.

The three major indices closed out Tuesday’s session lower, giving back some of Monday’s strong advances as September’s wave of selling retook markets. As of Tuesday’s close, the S&P 500 was on track to post a 4.7% monthly decline – its worst since March.

Only the materials sector has clung to gains in the blue-chip index for September to date. The energy, communication services and information technology sectors were the laggards, as a month-long correction in previously high-flying tech names took out these sectors’ leadership positions. The utilities and industrials sectors were on track to post losses for the month as well, but still outperformed the broader market.

With five weeks to go until Election Day, market pundits have warned of a potential for additional volatility conjured up by political uncertainty, compounded with ongoing concerns over the coronavirus pandemic and strain still facing the US economy.

“I think markets are really nervous into those 36 days [before the election] and one of the things we have to think about is, when does nervousness price in the worst is yet to come? When do you think the worst is priced in? At least from June to August highs, if you give up two-thirds of those gains … that would be 3,224 [on the S&P 500],” Tom Lee, Fundstrat Global Advisors managing partner and head of research, told Yahoo Finance. “We think that that’s when you start to price in the worst, because you’ve given up two-thirds of the rally that you’ve had since June, and I think the world is better than it was since June.”

Despite the pullback, Lee added he does not believe stocks are ultimately in a “down trend.”

“There’s still $4.3 trillion in cash on the sidelines. I don’t think in the history of any financial market in the world do you ever have a top when there’s 20% of the equity market sitting in cash,” he said. “Investor cash — that’s excluding the private equity cash, the record cash held by corporates too. So you’ve got tons of dry powder. People are bearish.”

On the economic data front, both ADP’s private payrolls report out Wednesday morning and the Department of Labor’s September jobs report out Friday – each the last before the election – are expected to show fewer than 1 million jobs added back in September, as the pace of the economic recovery sputters.

To that end, congressional lawmakers and Trump administration negotiators have been attempting to come to a deal to pass in the near-term another virus relief bill. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin on Tuesday discussed the $2.2 trillion Democratic stimulus proposal, according to a Bloomberg report, and are poised to hold further talks again on Wednesday. Still, most economists and policy pundits are bracing for no new stimulus legislation to pass before the general election.

9:50 p.m. ET Tuesday: Futures push higher with first presidential debate under way

Contracts on the three major indices were higher Tuesday evening as the first presidential debate between President Donald Trump and former Vice President Joe Biden was under way. In the first about 45 minutes of the debate, the discussion, moderated by Fox News anchor Chris Wallace, covered topics including the Supreme Court, and whether Trump’s pick Judge Amy Coney Barrett should be moved to be confirmed before the election, the handling of the Covid-19 pandemic, the candidates’ health-care plans and the labor market.

Here’s where futures were trading, as of 9:50 p.m. ET:

  • S&P 500 futures (ES=F): 3,344.75, up 11 points or 0.33%

  • Dow futures (YM=F): 27,493.00, up 85 points or 0.31%

  • Nasdaq futures (NQ=F): 11,368.5, up 30.75 points or 0.27%

6:11 p.m. ET Tuesday: Stock futures open lower

Here were the main moves in equity markets, as of 6:11 p.m. ET Tuesday:

  • S&P 500 futures (ES=F): 3,332.00, down 1.75 points or 0.05%

  • Dow futures (YM=F): 27,389.00, down 19 points or 0.07%

  • Nasdaq futures (NQ=F): 11,332.00, down 5.75 points or 0.05%

NEW YORK, NEW YORK - MARCH 18: Traders work on the floor of the New York Stock Exchange (NYSE) on March 18, 2src2src in New York City. The Dow fell more than 1,2srcsrc points today as COVID-19 fears continue to roil world markets. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – MARCH 18: Traders work on the floor of the New York Stock Exchange (NYSE) on March 18, 2020 in New York City. The Dow fell more than 1,200 points today as COVID-19 fears continue to roil world markets. (Photo by Spencer Platt/Getty Images)

Follow Yahoo Finance on TwitterFacebookInstagramFlipboardLinkedIn, and reddit.

Find live stock market quotes and the latest business and finance news

For tutorials and information on investing and trading stocks, check out Cashay

Read More

Categories
Market Stock

Stock Market Rally Attempt Continues, As Nasdaq Leads; ServiceNow, Veeva Are Stocks To Watch – Investor’s Business Daily

Access to this page has been denied because we believe you are using automation tools to browse the
website.

This may happen as a result of the following:

  • Javascript is disabled or blocked by an extension (ad blockers for example)
  • Your browser does not support cookies

Please make sure that Javascript and cookies are enabled on your browser and that you are not blocking
them from loading.

Reference ID: #5498dd60-ffb1-11ea-81f2-1df5979fd1da

Read More

Categories
Market Stock

Stock market news live updates: Stock futures trade mixed after selloff – Yahoo Finance

Stock futures traded mixed Wednesday evening, but mostly hugged the flat line as equity investors took a pause from the heavy selling earlier in the day.

The three major indices renewed September’s selling during the regular session. Another day of heavy tech declines dragged the S&P 500 and Nasdaq to their lowest closing levels since late July. The blue-chip index ended the day 9.6% below its record high from early September to come within striking distance of entering corrective territory, or a pullback of at least 10% from a recent closing high.

Equity investors are digesting a confluence of concerns, including increased uncertainty around the US presidential elections, signs of a growth slowdown, dimming hopes for fiscal stimulus and worsening trends in Covid-19 cases in the US and Europe, even as drugmakers race to develop an effective Covid-19 vaccine. JPMorgan Chase analysts said Tuesday that a contested US election is now their baseline view, given the expected rise in postal voting and President Donald Trump’s baseless but repeated allegations that the voting method is more conducive to fraud.

On stimulus, a number of Federal Reserve officials doubled down on assertions that it remained up to congressional lawmakers to unleash more fiscal stimulus to encourage a continued economic recovery. These remarks were spearheaded by Fed Chair Jerome Powell, who appeared before Congress for a second day of testimony on Wednesday and reiterated that more support was likely to be necessary, even as lawmakers remain at an impasse over how much fiscal stimulus should be unleashed and to whom it should be directed. In separate appearances and media discussions Wednesday, other officials including Cleveland Fed President Loretta Mester and Boston Federal Reserve President Eric Rosengren made similar remarks.

Investors will receive another update on the state of the labor market Thursday morning with the Department of Labor’s weekly initial jobless claims report, which is expected to affirm the slowdown in the economic recovery. New jobless claims are expected to have come in at 840,000 last week, improving modestly from the 860,000 reported during the previous week.

6:30 p.m. ET Wednesday: Stock futures trade mixed after selloff

Here were the main moves in equity markets, as of 6:30 p.m. ET Wednesday:

  • S&P 500 futures (ES=F): 3,234.00, up 2.75 points or 0.09%

  • Dow futures (YM=F): 26,728.00, up 43 points or 0.16%

  • Nasdaq futures (NQ=F): 10,821.75, down 7.25 points, or 0.07%

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, December 28, 2src15. REUTERS/Lucas Jackson TPX IMAGES OF THE DAY

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, December 28, 2015. REUTERS/Lucas Jackson TPX IMAGES OF THE DAY

Follow Yahoo Finance on TwitterFacebookInstagramFlipboardLinkedIn, and reddit.

Find live stock market quotes and the latest business and finance news

For tutorials and information on investing and trading stocks, check out Cashay

Read More

Categories
Nikola Stock

Nikola Stock Drops 26% After BP Backs Away From Hydrogen-Station Deal – Motley Fool

The embattled electric-truck start-up’s woes continued on Wednesday.

Shares of embattled electric-truck start-up Nikola (NASDAQ:NKLA) closed down more than 25% on Wednesday, following reports that energy giant BP (NYSE:BP) has backed away from a potential partnership following allegations that Nikola has misled investors. 

Nikola’s stock fell sharply following a Wall Street Journal report that the company’s negotiations with several potential partners, including BP, had stalled after a short-seller’s report cast doubt on the truck maker’s technology claims. 

The U.S. Securities and Exchange Commission also is investigating the allegations. 

Nikola has been seeking a partner to help it build a network of hydrogen refueling stations, a key component of its business plan for electric heavy trucks powered by hydrogen fuel cells. 

The Nikola One, a white electric semi truck.

Did Nikola mislead investors? The company hasn’t denied allegations that its original prototype, the Nikola One semi, didn’t propel itself. Image source: Nikola.

Nikola plans to offer the trucks to commercial-fleet operators via a 7 year or 700,000 mile lease, with maintenance and refueling — via a Nikola-owned network of stations — included in the lease cost. 

Nikola and BP had a deal in principle and were just a few days away from an announcement when the short-seller, Hindenburg Research, published its report on Sept. 10, according to a Bloomberg report. 

The deal with BP would have been announced just a few days after Nikola announced a separate deal with General Motors (NYSE:GM), in which the two companies will collaborate on an electric pickup truck. Nikola also agreed to buy battery packs and fuel cells from GM. 

Through Wednesday’s close, Nikola’s stock had lost about half of its value since the Hindenburg report was published. While GM has said that it stands by its deal with Nikola, the report has already had other ramifications: Nikola’s outspoken founder, Trevor Milton, left the company early on Monday and deleted his widely-followed Twitter account. 


John Rosevear owns shares of General Motors. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

“>

Read More

Categories
futures Stock

Stock futures flat in overnight trading after S&P 500 posts 4-day losing streak – CNBC

Stock futures rose slightly in overnight trading on Monday following a steep sell-off on Wall Street.

Futures on the Dow Jones Industrial Average rose about 100 points. The S&P 500 futures gained 0.4% and the Nasdaq 100 futures were up 0.5%.

The market’s September sell-off intensified on Monday with the Dow Jones Industrial Average dropping 500 points, suffering its worst day since Sept. 8. The S&P 500 lost 1.2%, posting its first four-day losing streak since February. The Nasdaq Composite dipped just 0.1% after a late-day comeback rally.

Shares of Tesla dropped nearly 6% in overnight trading after CEO Elon Musk said in a tweet that the electric car-maker’s “Battery Day” event would not reach “serious high-volume production” until 2022, which disappointed investors and analysts.

Investors grew more anxious about the pandemic as the U.K. is reportedly considering another national lockdown as daily new infections rise. Meanwhile, prospects of further U.S. coronavirus fiscal stimulus became bleaker as lawmakers brace for a Supreme Court confirmation fight as President Donald Trump rushes to nominate a successor to Justice Ruth Bader Ginsburg, who died on Friday.

“Coronavirus concerns have resurfaced, worrying investors that a reversal in reopening progress could be near,” Lindsey Bell, chief investment strategist for Ally Invest, said in a note. “More and more uncertainty is arising as we get closer to the election but no closer to Congressional fiscal relief. But we’re still optimistic this dip will be bought sooner rather than later.”

The major averages are on pace for steep losses for September, a typical weak month for stocks. All three major averages had just suffered three straight weeks of losses. The Dow and the S&P 500 have fallen 4.5% and 6.3% this month, respectively, while the Nasdaq has dropped 8.4% as investors dumped high-flying tech giants.

“Market volatility is returning after months of steady advances in risk assets, and we see elevated volatility ahead of the November U.S. election,” Jean Boivin, head of BlockRock Investment Institute, said in a note. “In addition, negotiations of a new U.S. fiscal package are dragging on, the pandemic is still spreading in many countries, and U.S. China tensions are running high.”

On Tuesday, investors will monitor a hearing with U.S. Treasury Secretary Steven Mnuchin and Federal Reserve chair Jerome Powell in front of the House Financial Services Committee about pandemic responses.

On earnings front, Nike will report its fiscal first-quarter results after the bell on Tuesday.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

Read More

Categories
Stock What's

What’s next for the stock market? It’s time to consider ‘babies that have gotten thrown out with the bath water,’ strategist says – MarketWatch

Key Words


iStockphoto


‘We’ve taken out the froth that had come into the market in certain [mega cap] names. It may be a good opportunity to pick up some really good, high quality growth stories that are on sale right now.’

That’s how John Stoltzfus, Oppenheimer Asset Management strategist and Wall Street bull, responded when CNBC asked him in an interview if big name stocks like Amazon
AMZN,
-1.78%

and Facebook
FB,
-0.89%

are on sale in light of recent declines.

“It’s probably not a bad time to consider looking for some babies that have gotten thrown out with the bath water,” Stoltzfus continued, adding he wouldn’t, however, “back up the truck” just yet.

Looking ahead, he said that there are two key factors the bull market will need to keep the rally going: A supportive Federal Reserve and a stimulus package. The availability of a vaccine and, of course, the election could also play a big role in where the stock market is headed from here.

“You want to see a result that comes out of this that is friendly to the taxpayer. That’s friendly to business, That’s friendly to creation of jobs — overall a good story for the economy,” Stoltzfus said of who ultimately ends up winning the election. “Anything that challenges that will likely see the markets continued to show nervousness.”

Listen to the whole interview:

Meanwhile, futures on the Dow Jones Industrial Average
DJIA,
-0.87%
,
S&P 500
SPX,
-1.11%

and Nasdaq Composite
COMP,
-1.07%

were all moving lower on Sunday night.

Read More

Categories
futures Stock

Stock futures are flat after Fed signals no rate hikes until 2023 – CNBC

Julius Shakari, from California in full PPE gear, takes photos with his friend in front of the Charging Bull, sometimes referred to as the Wall Street Bull, a bronze sculpture in the Financial District of Manhattan New York May 19, 2020.

Timothy A. Clary | AFP | Getty Images

U.S. stock futures were flat on Wednesday night as traders digested the Federal Reserve’s pledge to keep rates low over the next few years.

Dow Jones Industrial Average traded just below the flatline. S&P 500 and Nasdaq 100 futures were also little changed. 

Members of the Federal Open Market Committee indicated the U.S. overnight rate could stay anchored to the zero-bound through 2023 as the central bank tries to spur inflation. In a statement, the committee said: “With inflation running persistently below this longer run goal, the Committee will aim to achieve inflation moderately above 2% for some time so that inflation averages 2% over time.”

Fed Chairman Jerome Powell reiterated this stance in a news conference, saying easy monetary policy will remain “until these outcomes, including maximum employment, are achieved.”

He also said that parts of the U.S. economy will keep struggling unless lawmakers move forward with further fiscal stimulus. That comment from Powell came as lawmakers struggle to reach a deal on a new coronavirus aid bill. Earlier on Wednesday, White House chief of staff Mark Meadows said he was optimistic a deal could be struck.

Normally, the prospects of lower rates for a prolonged time period spur buying in equities. However, that was not the case on Wednesday.

The S&P 500 and Nasdaq both closed lower and the Dow ended well off its session high. Big Tech dragged down the S&P 500 and Nasdaq, with Apple, Facebook and Microsoft all closing lower.

“The major indices dipped back to their short-term trading range following the Fed’s announcements, confirming that bulls are still not out of the woods,” said Ken Berman, founder of Gorilla Trades. “While there was nothing scary in today’s Fed announcements, stocks reacted in a bearish fashion, especially in the tech sector.”

On Thursday, Wall Street will get the latest look at U.S. weekly jobless claims. U.S. housing starts data are also set for release.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

Read More

Categories
Market Stock

Is the Stock Market Open Today? Here Are the Hours for Labor Day 2020. – Barron’s

Text size

(Photo credit should read BRYAN R. SMITH/AFP/Getty Images)


Bryan R. Smith/AFP/Getty Images

After a wild week of trading that saw major indexes plunge, investors will get a much-needed break this Labor Day weekend.

While the week started off quietly enough, the three major indexes suffered their worst day since mid-June on Thursday, with the

S&P 500

dipping 3.5%, the

Dow Jones Industrial Average

falling 2.8%, and the

Nasdaq Composite

dropping 5%. Friday was a bumpy ride as well, with indexes dropping in the morning before largely recovering by the end of the day. At Friday’s close, the S&P 500, Dow, and Nasdaq were down 0.8%, 0.6%, and 1.3%, respectively.

Labor Day became a federal holiday in 1894 when President Grover Cleveland made the first Monday of every September a celebration of workers and their achievements. Even with Covid-19 canceling certain festivities this year like Labor Day parades, investors will still be able to enjoy other socially distanced Labor Day activities, including taking advantage of the many Labor Day sales at retailers like

Lowe’s

(ticker: LOW) and

Home Depot

(HD), this weekend—and into Monday as well. Major U.S. stock exchanges are closed in observation of Labor Day 2020 on Sept. 7.

Below, find which exchanges are open and their hours—and which are closed—on Labor Day.

Is the stock market open on Labor Day 2020?

The New York Stock Exchange and Nasdaq are both closed on Monday in recognition of Labor Day. Some CME Globex futures and options trading will also be closed on Monday, while the Securities Industry and Financial Markets Association recommends that markets for government bonds and other fixed-income securities close for the holiday.

Are International Stock Markets Closed on Memorial Day?Most international markets are open, including the

London Stock Exchange,

the Mexican Stock Exchange, the Shanghai Stock Exchange, the

Singapore Exchange,

the

Japan Exchange Group,

and the Stock Exchange of Hong Kong. The Toronto Stock Exchange, however, is closed.

Write to editors@barrons.com

Read More

Categories
Here's Stock

Here’s why the stock market tumbled last week and what’s ahead for Wall Street – MarketWatch

A bout of volatility returned to financial markets with a vengeance last week, disrupting a nearly uninterrupted climb to records for U.S. stock indexes and raising questions about the path for Wall Street headed into a hornet’s nest of challenges for investors.

Perhaps, the overarching question is, “What the heck just happened to equity markets in the 48 hours after the S&P 500 index
SPX,
-0.81%

and Nasdaq Composite Index
COMP,
-1.26%

on Wednesday notched their 22nd and 43rd closing records of 2020 respectively, and the Dow
DJIA,
-0.56%

scored its first finish above 29,000 since February, bringing it within 2% of its Feb. 12 all-time closing high?”

The bull perspective

From the bull’s perspective, not a lot has changed.

Bullish investors see the promise of lower interest rates for years to come and further injections of money by the Federal Reserve into various parts of the financial system, along with perhaps another fiscal stimulus from the government, as buttressing the market and offering a floor against future dramatic losses.

Optimists see the slump that the equity market experienced this week as a bump in the road to greater gains.

“Since the current bull market kicked off in March, there have only been two pullbacks of more than 5%. Recent bull markets have tended to have three or four setbacks over the first nine months,” wrote SunTrust Advisory chief market strategist Keith Lerner in a research note on Thursday — see chart:

Lerner also notes that the five-month winning streak for the S&P 500 since August, which has only occurred 27 times since 1950, is a good sign because it tends to imply that further returns are ahead.

So, investors may view this retreat as a natural corrective phase that removes some of the euphoric froth from equity valuations that had far exceeded the metrics that pragmatic investors use to assess an asset’s value compared against its peers.

MarketWatch’s William Watts wrote last Thursday, citing Dan Suzuki, deputy chief investment officer at Richard Bernstein Advisors, that technology stocks — particularly, a cohort that includes Facebook
FB,
-2.88%
,
Amazon.com
AMZN,
-2.17%
,
Netflix
NFLX,
-1.84%
,
Microsoft
MSFT,
-1.40%
,
Apple
AAPL,
+0.06%

and Google parent Alphabet
GOOGL,
-2.96%

GOOG,
-3.09%

(or FANMAG) — had seen their valuations rise by dint of multiple expansion, or rapidly rising prices, while other segments of the market had seen earnings estimates fall out of whack with their prices, distorting the “P” portion of the commonly used priced-to-earnings metric, or P/E, used to gauge a stock’s worth.

“But these two groups of stocks have gotten more expensive for completely different reasons,” he noted. “FANMAG’s P/E has risen because their ‘P’ (prices) has gone up faster than their ‘E’ (earnings), while the P/E for the rest of the S&P 500 has expanded because ‘E’ has gone down much more than ‘P’,” wrote Suzuki.

Indeed during the period between the market’s March lows and early last week, investors have maintained a voracious appetite for technology-related stocks, and a group known as “stay-at-home companies”, including Zoom Video Communications Inc.
ZM,
-2.99%
,
due to the belief that not only are they receiving a boost from the COVID-19 pandemic but also that they are best positioned to benefit when the economy eventually emerges from the recession.

A bounce off Friday’s lows, aided by moves into financials also was viewed as constructive for the broader market, heading into the three-day Labor Day weekend.

“The move higher was mostly led by financials, which came as a result of slightly higher rates rate on the long end of the curve, notably the 10 basis point move in the 10-year Treasury,” wrote Peter Essele, head of portfolio management for Commonwealth Financial Network, via email.

Yields in the 10-year Treasury
TMUBMUSD10Y,
0.721%

benchmark bond rose to 0.72%, marking the biggest single-day rise on Friday since May 18.

It’s unusual for yields to climb as stocks are falling as they did on Friday because investors usually turn to the perceived safety of government debt, driving prices higher and yields lower, in times of uncertainty. That didn’t occur on Friday and may be interpreted by some as signaling that at least fixed-income investors see the move in stocks as indicative of a temporary pullback rather than a more significant and lasting decline.

UBS Global Wealth Management’s chief Investment Officer Mark Haefele said that he viewed this week’s market drop as investors consolidating gains. “We view the latest selloff as a bout of profit-taking after a strong run,” he wrote.

“The S&P 500 enjoyed its strongest August in 34 years, gaining 7%, and added a further 2.3% in the first two days of September, to reach a fresh record high,” he wrote. “Stocks are still well-supported by a combination of Fed liquidity, attractive equity risk premiums, and a continuing recovery as economies reopen from the lockdowns.”

The bear’s perspective

From a bearish vantage point, the outlook for stocks looks more uncertain for investors. This uncertainty may have well laid the groundwork for substantial episodes of turbulence if not gut-wrenching drops in stocks, some experts say.

“The mini-tech selloff on Thursday has left a lot of scarring; it is not overly surprising that in New York equities trading, things were relatively muted into a long weekend,” wrote Stephen Innes, chief global markets strategist at AxiCorp, in a Friday research note.

September is a notoriously weak month for investors, and even if that weakness is somewhat moderated in an election year, October also has the hallmarks of a rough patch for Wall Street, with the Nov. 3 presidential election looming.

Chris Senyek, chief investment strategist at Wolfe Research, said the possibility of a resurgence of COVID-19 headed into the fall and winter also is cause to lighten up on stocks.

“Our sense is that a similar resurgence in infection rates is likely to occur in the United States this fall as children and college students returns to school and flu season begins,” analysts at Wolfe Research wrote on Friday.

Michael Kramer, founder of Mott Capital Markets, in a blog on Friday described the recent swings in the market as “insane” and said that it is difficult to gauge what’s ahead for the market, but he notes that an explosion in volumes related to the selloff could signal a change in the uptrend for stocks.

He noted that for the first time since April 3, the S&P 500 closed below its uptrend. “This is typically not something we want to see; it would indicate that momentum is likely shifting,” he wrote (see attached chart).

Of Friday’s paring of losses into the close, Kramer said: “The rally into the close was impressive, but it could have just as easily been on the heels of short-covering as it was on real buying.”

Part of the downturn occurred as two popular companies saw their shares drop after stock splits: Apple
AAPL,
+0.06%

and Tesla
TSLA,
+2.78%
.

Tesla has been among the highest of highfliers in recent months and viewed by some as a gauge of sentiment in the overall market. Its recent retreat is something bearish investors have pointed to as a signal of weakness in the market.

On top of that, Tesla wasn’t announced as a new entrant into the S&P 500 index late Friday, which may cast a pall over the stock that has lost about 20% from its peak.

The road ahead

Looking ahead, investors turn next to the Federal Reserve’s Sept. 15-16 policy meeting, which could be important in clarifying the length of the time interest rates could be held lower but also what, if any, new quantitative easing the central bank will implement.

Fed Chairman Jerome Powell in an interview with National Public Radio conducted Friday afternoon said that the 1.4 million jobs added to the labor market in August and an unemployment rate falling to 8.4% from 10.2% as a good sign of progress in the economy.

But he did emphasize that progress is going to be slow: “We do think it will get harder from here,” Powell said.

Doubts that the government will soon provide a fresh round of fiscal stimulus for out-of-work Americans has put some pressure on the Fed to do more to dull the impact on the economy from disruptions caused by the pandemic.

The Fed’s role may be the most important feature of whether the stock market is able to continue to make progress higher. As it stands now, there are few alternatives to stocks, with long-dated government bonds yielding around 1% or less.

Read More

Categories
Market Stock

Stock Market Sell-Off Continues: Dow Plunges 400 Points, S&P 500 Falls 1.7% – Forbes

TOPLINE

The stock market opened slightly higher on Friday but quickly turned negative despite a solid August jobs report, which showed the unemployment rate fell more than expected as the U.S. added 1.4 million jobs last month.

New York Stock Market Plunges More Than 8srcsrc Points

Stocks continued to plunge following Thursday’s sell-off.


Robert Nickelsberg/Getty Images

KEY FACTS

The Dow Jones Industrial Average was down 1.5%, over 400 points, on Friday, while the S&P 500 fell 1.9% and the tech-heavy Nasdaq Composite lost 3%.

Stocks initially moved higher after the release of the latest monthly jobs report: The U.S. added 1.4 million jobs in August, according to the Labor Department.

The unemployment rate fell to 8.4% last month from 10.2% in July (economists were expecting the rate to decline to 9.8% in August).

While the new data shows that the labor market is making modest gains, the pace of recovery has slowed significantly thanks to the expiration of federal stimulus benefits.

The market turned negative, however, as tech stocks remained under pressure following their steep sell-off on Thursday: Facebook, Amazon, Microsoft and Google-parent Alphabet were all down in early trading.

Shares of both Apple and Tesla, which fell by between 8% and 9% on Thursday, continued to struggle on Friday, just days after both companies completed stock splits.

crucial quote

“Today’s [jobs] report is another sign that the recovery in the labor market is nearing the point of exhaustion and should signal to lawmakers that another round of fiscal stimulus will be needed to keep the economic recovery on track,” says Charlie Ripley, senior investment strategist for Allianz Investment Management.

Key background

Friday’s session follows a sharp sell-off on Wall Street: The market tanked on Thursday, posting its worst day since June as stocks retreated from record highs and tech shares plunged. The Dow slid 2.8%—more than 800 points, while the S&P fell 3.5% and the Nasdaq dropped 5%. Shares of Big Tech companies, which have been instrumental in leading the market’s rebound over the past few months, dragged the market lower on Thursday as the tech sector had its worst day since March. Before Thursday’s sell-off, stocks had made a strong start to September, despite it being a historically bad month for markets.

Further reading

Stock Market Sell-Off: Dow Plunges 800 Points, S&P 500 Falls 3.5% (Forbes)

The U.S. Added 1.4 Million Jobs In August, But The Recovery Is Slowing Down (Forbes)

Stocks Just Had The Best August Since 1984, But History Shows Trouble Is On The Way (Forbes)

Robinhood Reportedly Hit By SEC Fraud Probe, Possible Fine Of Over $10 Million (Forbes)

Full coverage and live updates on the Coronavirus

Follow me on Twitter or LinkedInSend me a secure tip

Read More