On Monday, us time, the Dow Jones index closed down 582 points, or 3.04%, at 18591.93, its lowest level in three years. The standard & Poors 500 index fell 2.9% to 2237.40, while the NASDAQ fell 0.27% to 6860.67.
In Mondays trading in the US stock market, technology stocks were relatively resilient, with Apples share price closing at $224.37, down 2.12%; alphabet, the parent company of Google, closing at $1056.62, down 1.46%; Amazon, closing at $1902.83, up 3.07%; Microsoft, closing at $135.98, down 1.00%; Facebook, closing at $148.10, down 1.09%; Oracle, closing at $44.19, It was down 3.2%; Netflix was up 8.24% to $360.27; Tesla was up 1.58% to $434.29; Uber was up 5.02% to $22.40; LYFT was up 6.3% to $22.61.
Us chip leaders generally rose, with TSMC up 1.64% to $45.26, Intel up 8.18% to $49.58, NVIDIA up 3.37% to $212.69, Texas Instruments up 0.86% to $98.44, Qualcomm up 2.66% to $62.53, Broadcom up 0.65% to $193.47, amd up 41.64 Up 5.12%; Meguiar technology, up 5.93% to US $38.25; and applied materials, up 5.74% to US $40.17.
Chinas Internet companies listed in the United States rose and fell, with Alibaba closing at $176.34, down 2.74%; JD closing at $38.61, up 2.52%; Baidu closing at $91.22, up 2.89%; Sina closing at $30.28, up 4.85%; Weibo closing at $34.08, up 2.07%; Sohu closing at $6.10, up 7.21%; Sogou closing at $3.29, down 51job closed at $54.59, down 9.8%; Auto Home closed at $65.85, up 3.36%; 58 city closed at $47.05, up 2.37%; happy times closed at $48.78, up 15.95%; learn from who closed at $37.88, down 5.13%; bilibilibili closed at $20.26, up 0.35%; Momo closed at $22.00, up 0.55%; Jumei premium products At $17.18, down 5.03%; pinduoduo at $34.10, up 1.58%; iqiyi at $17.47, down 0.4%; Huya at $13.49, up 0.97%; douyu at $7.00, down 3.45%.
In less than 24 hours, a major U.S. fiscal spending program failed twice in Congress to clear a key procedural hurdle. Earlier Monday, U.S. Treasury Secretary Steven mnuchin told the media that the U.S. Congress was very close to reaching a fiscal spending plan, noting that the plan must be advanced within today..
We have some money to use now, but we need congressional approval today to use more so that we can support American workers and the American economy, mnuchin said
Chuck Schumer, a Democratic senator from New York State and a minority leader in the U.S. Senate, said he would meet with Mr. mnuchin to try to reach an agreement.
The failure of the U.S. Senate to vote on fiscal spending puts enough pressure on Wall Street, even after the Federal Reserve announced an open-ended asset purchase plan. In the plan, the Fed will support smooth market operation without ceiling and effectively transmit monetary policy to the broader financial environment and economy.
Paul Hickey, co-founder of bespoke investment, a market research firm, points out that while the Feds actions are a great help to the market, the only way for the market to achieve sustainable improvement is when the economy recovers, or at least there is a real path to achieve this goal.
The market has also been rattled by a series of tweets from trump that may indicate that he is considering getting workers back to work before the epidemic is contained. Trump also tweeted: flatten the curve, not the economy.
On Monday, us time, Apples market value fell below $1 trillion for the first time since September, making Microsoft the only US technology company with a market value of more than $1 trillion.
Apple shares fell to $224.37 on Monday. Apples share price has fallen 31% since hitting a peak of $327.20 on February 12, which means it lost about $468 billion in value.
Microsofts share price has performed better. In the recent downturn, the software giants share price has fallen by about 28%, bringing the companys market value down to $1.04 trillion.
Before that, the market value of Amazon and alphabet briefly exceeded the $1 trillion mark, and now their market value has already fallen below $1 trillion.
In the new bear market, Amazons share price has actually outperformed the market. Amazons shares fell about 14% from their February peak, but rose slightly throughout the year, up 3.1% to $1902.83 on Monday. The companys current market value is about $924 billion.
The stock price of alphabet, Googles parent company, also underperformed. In the current general market decline, the stock has fallen 34% and its market value is close to $700bn.
Jeffrey Kvaal, an analyst at market research firm insinet, lowered Apples target share price to $225 from $295, while maintaining a neutral rating on the stock. He lowered Apples profit forecast for the fiscal year 2020 (as of September this year) to $13.20 from $13.69 per share and to $15.35 per share from $15.69 in 2021. (Liu Chun)
Source: Qiao JunJing, editor in charge of Netease Technology Report