The Dow Jones Industrial Average (DJIA) fell more than 150 points on Thursday, heralding the fourth straight day of losses.
When the dust settled, the DJIA had lost 151.69 points to close at 34,879.38, while the S&P 500 fell 0.46% to 4,493.28, also dropping for the fourth straight day. The technology-heavy Nasdaq Composite dropped 0.25% to 15,248.25.
All three major averages are perhaps headed for losses during this short week of trading.
- The Oil markets fell with Crude dropping 2.01% to $67.91, and WTI Brent falling 1.89% to $71.23.
- The US Ten Year Treasury – the benchmark for rates falling 4 basis points to 1.30%.
- The Crypto Coins Bitcoin and Ethereum also fell.
The Charts listed show the numbers:
Investors remained cautious as they try to discern what’s going to happen next with the Delta variant, the economic reopening, and the Federal Reserve. These sentiments heavily weighed on their minds and this is notwithstanding better than expected unemployment numbers.
Most businesses are paring their earnings expectations, awaiting the new Covid rules to be announced by the President, and possible delays in the reopening of the economy.
The Fed meets on Sep. 21-22 and investors are worried the central bank will indicate a move to slow down its monthly bond purchase program.
In our daily updates in the Daily Global Insights (DGI) Program, we have been highlighting the Bond Yields data and how the low rates had boosted the S & P earnings and recovery from the pandemic.
Biden and his team have a very poor record in managing exits and economic transition, and we hope that the time the tapering of asset purchase and tightening of rates in a manner that doesn’t cause economic catastrophe.
Market Pundits predict a Year-End close of 4650 to 4700 for S&P, 27% Growth Ex-Dividend. It’s Trading at 19.63% YTD.
1. Text in Blue points to additional data on the topic.
2. The views expressed here are those of the author and do not necessarily represent or reflect the views of PGurus.
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