It was a red day for the three leading indices on Wall Street on Thursday. Job numbers and hangovers from yesterday’s interest rate news characterized the development.
The Dow Jones fell 0.47 percent to 27,901.78 point.
The S&P 500 ended 0.84 percent at 3,357.03 point.
Technology-heavy Nasdaq Composite shrank by 1.27 percent to 10,910.28 point.
Hangover after interest rate decision
The responsibility for today’s downturn in the US stock market can by and large be assigned to yesterday’s interest rate decision by the Fed. It writes MarketWatch.
The US Federal Reserve announced during Wednesday’s interest rate meeting that they keep the key interest rate unchanged in the range of zero to 0.25 percent. This is how the central bank will continue for several years. In a press release, the Fed wrote that it plans to keep interest rates unchanged at close to zero until 2023.
Technology case
A number of the major tech stocks fell on Thursday. Facebook and Amazon fell 3.3 percent and 2.3 percent, respectively, while Netflix was down 2.8 percent.
Of individual shares, it is also worth noting that Tesla fell 4.2 percent.
There has long been great excitement associated with the electric car giant’s announced “Battery Day” on Tuesday next week. Musk is expected to reveal major advances on the battery front.
Analysts from Baird claim to CNBC that their best guess is that Tesla plans to announce that they will increase their battery cell production significantly, in order to meet the ever-increasing demand.
Somewhat disappointing job numbers
The number of first-time applicants for unemployment benefits in the United States (jobless claims) ended at 860,000 last week, according to current figures from the US Department of Labor. The consensus, however, pointed to 850,000.
CNBC, for its part, nevertheless conveyed that the figures had little effect on Wall Street, which in any case opened sharply down.
The previous week’s survey (as of 5 September) was revised up from 884,000 to 893,000. Thus, the number of jobless claims has remained below one million for three weeks in a row.
Fear, gold, oil and interest
The VIX index, popularly called the fear index, rose 2.27 percent to 26.6.
The gold price was down 0.83 percent and an ounce went at closing time for 1,954.2 dollars.
At 22 o’clock, North Sea oil had risen 2.36 percent to $ 43.30 a barrel.
The 3-month interest rate fell 1.5 basis points to 0.095 per cent.
The interest rate on the 2-year-old was down 1.2 basis points to 0.133 percent.
The 10-year interest rate fell 0.6 basis points to 0.692 per cent.
The 30-year interest rate fell by 3.3 basis points to 1.430 per cent.
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