Investors worried that US economic growth slowed and US stocks plummeted

0
100

Traders work at the New York Stock Exchange.

China news agency, New York, January 3rd Local time January 3, the US stock market failed to extend the weak trend of the previous day, the New York stock market three major stock indexes fell sharply, the Dow Jones Industrial Average fell 660 points throughout the day.

On the same day, the Dow closed at 22686.22 points, a decrease of 2.83%; the Standard & Poor’s 500 Index closed at 2478.89 points, down 2.48%; the Nasdaq Composite Index closed at 6463.50 points, down 3.04%? The analysis believes that investors worry that the US economic growth slowdown is one of the important reasons for the stock market decline.

The Institute for Supply Management (ISM) released data on the same day. The US ISM manufacturing index for December 2018 was 54.1, significantly lower than the expected value of 57.5. In November 2018 the index was 59.3. This is not only the new low since the index was in November 2016, but also the largest decline since October 2008. In addition, the US ISM manufacturing price payment index, manufacturing new orders index, manufacturing employment index fell in December.

The Wall Street Journal pointed out that after the release of the above data, the three major stock indexes in the New York stock market fell significantly. The report quoted analysts as saying that the decline in the stock market is a “normal reaction” to the market’s possible slowdown in economic growth. The New York Times pointed out that an ISM manufacturing index above 50 means that the manufacturing industry is expanding and the US economy is still growing. But lower-than-expected data has caused investors to worry about whether the economy will continue to grow in the long run.

Apple’s cut in expected revenue is another factor that has caused the stock market to fall. Apple announced on the 2nd that the first quarter of 2019 revenue is expected to be about 84 billion US dollars, lower than the previous forecast of 89 billion – 93 billion US dollars; gross margin is expected to 38%, is the lower limit of the previous forecast range. Affected by this, Apple’s stock fell as much as 9.96% on the day. Other technology stocks also performed poorly. Social media Facebook (Facebook), e-commerce giant Amazon, and Google’s parent company all fell more than 2.5%.

As the stock market fell, investors turned to safe-haven assets such as gold and government bonds. The most active February gold futures price on the New York Mercantile Exchange gold futures market rose 10.7 US dollars from the previous trading day to close at 1294.8 US dollars per ounce, or 0.83%; the US 10-year government bond price exceeded 104 US dollars, or 0.55%. .

LEAVE A REPLY

Please enter your comment!
Please enter your name here