[ad_1]
The S & P 500 erased its initial losses and briefly turned positive Wednesday at the noon trading session, fueled by financial actions in anticipation of the release of the minutes of the September meeting of the Federal Reserve.
The index recently fell by less than 0.1% after losing up to 1% earlier in the day. The Dow Jones Industrial Average Index fell 40 points, or 0.2%, to 25757. The Nasdaq Composite, a technology-leading technology, plunged 0.2%.
The leading indexes had their best day in six months on Tuesday, easing some of their declines from last week. Nonetheless, worries about rising interest rates and the possibility of the US economy culminating have recently rocked equities. Volatility has increased and S & P 500 and Dow manufacturers are down almost 4% from their recent highs.
Persistent concerns over weak tariffs that weaken the global economy and mixed data outside the US also continue to weigh on financial markets.
With investors increasingly worried that rising interest rates will dampen earnings growth, the Federal Reserve is expected to release the minutes of its most recent meeting. Many analysts are expecting a further rate hike in December, and some believe that clues to the way forward for 2019 could trigger a new equity swap.
Although the US economy is growing at a faster pace than it has been over the years, some investors fear that the steady rise in US Treasury yields will make stocks less attractive and no longer attract volatility.
"Even if it does not lead to an economic accident, people start to worry and say," Oh, that could lead to a stock market crash, "said John Toohey, Head of Equities at USAA Asset Management.
On Wednesday, the 10-year Treasury yield rose slightly from 3.158% to 3.163%, according to Tradeweb. Bond yields rise with falling prices. The WSJ Dollar Index, which tracks the dollar against a basket of 16 other currencies, added 0.2%.
Despite the concern over the tightening of the financial situation, some analysts remain convinced that another strong earnings quarter will help the market stabilize.
Bank stocks helped the market recover from most of its declines on Wednesday, as the S & P 500 financial sector jumped 1.1% as the lenders' earnings season continued.
Actions of
United States Bancorp
3.4% after the company announced a 16% increase in profits over the previous year.
Morgan Stanley
and
Goldman Sachs
each was up more than 3% for the second consecutive session after their Tuesday earnings reports.
Among the technological and Internet values,
Netflix
climbed 4% after the video streaming company announced a growth in its subscribers stronger than expected.
The Federal Reserve publishes the minutes of its meeting on September 25 and 26, Wednesday at 2 pm EDT.
Photo:
chris wattie / Reuters
But the computer giant
International Business Machines
The group was one of the lagging countries, registering a 5.9% drop and a drop in Dow's industries, while revenue growth stopped after three quarters.
In the transport sector,
United Continental Holdings
Shares rose 5.8% as the airline operator's profitability targets increased.
Businesses in the travel sector and industrial firms more sensitive to global economic growth have been among the laggards in the market in 2018. Home Renovation Retailer
Home Depot
lost 4.2%, exceeding Dow's industrial index by more than 50 points, following a downgrade by Credit Suisse analysts.
UnitedHealth Group
The Dow Jones also lagged, down 1.7% to trim some of Tuesday's advance following its latest results.
In the other countries, the Stoxx Europe 600 index fell by 0.4%, as gains in property and technology stocks were offset by declines in travel and leisure shares and other sectors.
Asian equities rebounded as US markets skyrocketed the day before. Japan's Nikkei 225 gained 1.3% and the Shanghai Composite 0.6%.
Write to Amrith Ramkumar at [email protected]
Source link
