Stocks New York End: Losses – Hope for aid package fades – 10/19/20

The dwindling hopes for a quick Corona aid package in the USA put a heavy burden on Wall Street on Monday. The main stock indices closed after a …

NEW YORK (dpa-AFX) – The dwindling hopes for a quick Corona aid package in the USA put Wall Street under heavy pressure on Monday. The most important stock indices closed significantly in the red after a cautious start to trading.

The Dow Jones Industrial (Dow Jones 30 Industrial) ended up being 1.44 percent lower at 28,195.42 points. The market-wide S&P 500 fell 1.63 percent to 3426.92 points. The technology-heavy selection index NASDAQ 100 lost 1.84 percent to 11,634.35 points.

On Wall Street, investors mainly discussed the latest statements by US politician Nancy Pelosi. With a deadline set until Tuesday, the spokeswoman for the House of Representatives had meanwhile spread confidence that there could still be movement in the stalled talks about new aid measures before the US elections. On the US broadcaster ABC News, the Democrat increased the pressure on the Republican government around President Donald Trump with fresh statements. The latter recently proposed a package worth around $ 1.8 trillion, but the Democrats are calling for more.

According to market strategist Phil Orlando from the investment house Federated Hermes, the exact amount of the aid package is still the smallest problem. The more serious question is what the additional money should be used for. Among other things, it is about the amount of additional unemployment benefits and the question of what the cities and states are allowed to use the aid from Washington for.

According to market analyst Timo Emden from Emden Research, investors currently do not want to be drawn into larger commitments. “It is the increased uncertainty surrounding the corona pandemic, the strained patience in the struggle for a US aid package and the ever-approaching US presidential election that has made investors more cautious,” said the expert.

At the top of the Dow, only Intel’s shares posted gains, advancing 0.8 percent. According to a press report, the chip manufacturer wants to sell a subsidiary for ten billion US dollars. Intel is negotiating with its South Korean industry colleague SK Hynix about the acquisition of the semiconductor memory specialist, reported the “Wall Street Journal” (“WSJ”).

The oil company ConocoPhillips also provided a topic of discussion with the planned takeover of the oil shale company Concho Resources. The Bloomberg news agency had recently reported on talks between the two corporations, driving Concho shares up. Concho shareholders will now be offered 1.46 shares of ConocoPhilips for 1 share: it would be the largest takeover in the oil shale industry this year. The shares in Concho and ConocoPhilips lost initial profits in the gloomy environment and were each around three percent in the red at the end.

The shares of Zoom Video Communications, meanwhile, braced against the weak market and closed 1.7 percent higher after they had reached a record high in the course of trading. The software company for video conferencing is currently benefiting from the corona pandemic.

The euro was last listed at 1.1770 US dollars. The European Central Bank had set the reference rate at 1.1785 (Friday: 1.1741) dollars. The dollar cost 0.8485 (0.8517) euros. The futures contract for ten-year US Treasuries (T-Note-Future) fell 0.12 percent to 138.85 points, while the yield on ten-year bonds rose to 0.767 percent./la/he

— By Lutz Alexander, dpa-AFX —


Share on facebook
Share on pinterest
Share on twitter
Share on linkedin
Share on email


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.