There was a broad decline on Wall Street on Wednesday. All three leading indices fell, and tech stocks did the worst.
The lack of news about new stimulus packages weighed on sentiment.
“The further we go without more stimuli, the more difficult it will be to maintain the recovery in the economy,” Willie Delwiche of Baird told Reuters.
Fed chief Jerome Powell said on Wednesday that the central bank did not plan any major changes to the so-called “Main Street” lending program. He said at the same time that both the Fed and Congress must continue to support economic development, according to Reuters.
– The market digests the idea that the growth expectations of investors may not be met. As fiscal impulses in the United States begin to wane, some expectations of a slow and steady improvement are shaken, Lauren Goodwin of New York Life Investments told Bloomberg.
Furthermore, cases of infection with the coronavirus are in focus as they are on a rising course in Europe while levels in the USA remain at a high level.
– The markets are changing very fast. Ultimately, there is a floor for the market and we will not fall back, probably, to the lows in March, said analyst Nadège Dufossé in Candriam, according to The Wall Street Journal.
Otherwise, recent figures on Wednesday showed that the PMI for the service sector in the US was 54.6 in August against 55.0 in July and expected 54.7, according to Direkt Makro.
The PMI for the industrial sector was 53.5 in the month, against 53.1 the month before and expected 53.1.
The Dow Jones fell 1.92 percent to 26,763.00.
Only two of the 30 stocks in the index rose.
The winner was Nike, which rose as much as 8.77 percent after reporting an increase in online sales of 82 percent.
Johnson & Johnson rose a marginal 0.12 percent after the company announced it had begun its phase-3 test round for the company’s corona vaccine.
American Express fell 2.98 percent after Bank of America downgraded the stock from neutral to underperform, according to CNBC.
Apple and Microsoft fell 4.19 and 3.29 percent.
The loser was Salesforce which fell 4.75 percent.
Nasdaq fell 3.02 percent to 10,632.99.
Sidden top, the index is down 12 percent.
Amazon fell 4.13 percent, while Netflix ended down 4.19 percent.
Tesla fell 10.34 percent after Tuesday’s battery day. Elon Musk then gave a production update with, among other things, a 50 percent reduction in battery cost and a new vehicle that will cost 25,000 dollars. Both are correct a few years ahead, and according to CNBC, analysts are worried about the implementation.
Nikola plunged as much as 25.82 percent. According to The Wall Street Journal, talks with several potential partners, including BP, about building hydrogen filling stations have stalled after the Hindenburg report.
S&P fell 2.37 percent to 3,236.93.
Twitter rose 6.11 percent after Pivotal Research upgraded the stock from hold to buy, according to CNBC.
Oil service giants Baker Hughes and Halliburton fell 6.04 and 5.06 percent, respectively.
VIX, or the fear index, rose 8.19 percent to 29.06
At the close of trading in the US, Brent oil is down 0.34 percent to $ 41.58 per barrel, while WTI oil is down 0.38 percent to $ 39.65 per barrel.
The gold price fell 2.26 percent to $ 1,864.50 per ounce.
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