Wall Street in red, and the Dow Jones hits a two week low
The New York Stock Exchange ended in the red on Wednesday amid renewed concerns about the strength of the economic recovery in the US. There’s uncertainty surrounding the Fed’s monetary policy decisions in the US.
In its Beige Book published two hours before the close, the US central bank noted that the US economy had downgraded slightly in August.
The Dow Jones index fell by 0.2%, or 68.93 points, to 35,031.07.
The S&P-500 lost 0.13% or 5.93 points, to 4,514.1 points.
The Nasdaq slipped by 0.57% or 87.69 points to 15,286.64.
Apple shed 1.07%, and Facebook lost 1.23%, weighing on the trend.
Nervousness over the economic recovery
According to Morgan Stanley strategist Andrew Sheets, the market is in the final stages of a mid-cycle transition, so this could be a rough September and October.
The Beige Book attested that US growth slowed this summer because of the Delta variant. Analysts say this scenario remains a source of uncertainty as the gap between the demand for labor and job seekers has widened further.
For Aoifinn Devitt, director of the Moneta firm, nothing has changed substantially so investors are reluctant to put money in the market.
In terms of sectors, public services, essential consumer goods, and real estate were the most favored of the day. Meanwhile, energy, raw materials, and communications were the most affected.
Among the 30 Dow Jones companies, Coca-Cola led the advances, increasing by 1.35%. Visa followed it with a rise of 1.25%. 3M also gained 1.2%. Dow was the most affected, losing 1.91%. Also, UnitedHealth shed 1.39%, and Boeing yielded 1.33%.
The online payment giant PayPal Holdings dropped by 2.7% after announcing the takeover of the Japanese Paidy for $2.7 billion.
The crypto-asset exchange platform Coinbase fell by 3.2% after announcing that the SEC warned it of the risk of legal action if it proceeds with its proposed offer of interest-bearing cryptocurrency lending services.
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