Technology stocks dragged U.S. stocks down, NASDAQ fell 1.69percent, gold fell more than 5percent

category:Finance
 Technology stocks dragged U.S. stocks down, NASDAQ fell 1.69percent, gold fell more than 5percent


On Tuesday, three major U.S. stock indexes opened higher and lower, with investors focused on the latest vaccine development progress and the prospect of the U.S. Congress stimulus plan negotiations. By the end of the day, the Dow was down 104.53 points, or 0.38%, at 27686.91, the Nasdaq was down 1.69% to 10782.82, and the S & P 500 index was down 0.80% to 3333.69. The CBOE panic index, a measure of U.S. stock market volatility, rose 8.6% to 24.03.

Individual stock performance

Technology stocks were the main drag on the market performance. Among the big five faang companies, Google fell 1.1%, Amazon fell 2.1%, Facebook fell 2.6%, apple fell 3.0%, and Netflix fell 3.4%.

Tesla rose 7.9% after hours, and the company announced a 1-5 split plan.

Financial sector strengthened, with JP Morgan, Wells Fargo and Morgan Stanley up more than 2%, while Citigroup, Bank of America and Deutsche Bank rose more than 1%. The trend of bank stocks was mainly boosted by the rebound in U.S. bond yields. The yield on 10-year US Treasury bonds rose 8.4 basis points to 0.657%, the highest since July 6.

Precious metal producers collectively fell, with Pan American silver down more than 11%, Yamana gold down nearly 10%, Barrick gold down more than 8%, and Newmont mining fell 7.4%. The Comex gold December contract closed down 4.58% to $1946 / oz, the biggest one-day drop since March this year, affected by the easing of risk aversion.

Western oil fell 8.0%. The companys second quarter revenue was $2.98 billion, down 32.6% year-on-year, far lower than the markets expected $3.8 billion and a loss of $8.4 billion. The company announced a $6.6 billion reduction in assets and a sharp cut in this years production forecast.

In terms of China capital stocks, Ctrip rose 0.9%, Alibaba rose 0.1%, Jingdong fell 0.5%, Tencent music fell 1.2%, ideal car fell 2.6%, and Weilai automobile fell 8.6%.

The stimulus negotiations are full of twists and turns

The number of new confirmed cases in a single day in the United States has been less than 50000 for the second consecutive day, and the number of inpatients in California, New York and Texas has also declined, strengthening the expectation that the public health crisis is beginning to be controlled. Novel coronavirus pneumonia will receive new information on the new crown vaccine on Tuesday, including 6 vaccine candidates, the White House adviser Conway said. Trump will receive the latest information on the new crown pneumonia vaccine on Tuesday. Earlier on Tuesday, Russia announced that it had approved the first new coronavirus vaccine, becoming the first country in the world to approve a new coronavirus vaccine.

Investor sentiment was boosted by signs that trump and Democrats are open to resuming negotiations on a broad economic rescue package. After trump signed an executive order on unemployment assistance and other relief measures over the weekend, U.S. government officials and Democratic leaders urged each other to return to the negotiating table.

On Monday, U.S. Treasury Secretary manuchin said there was room for compromise in negotiations on aid for the epidemic. At present, the U.S. Congress has entered the recess, and only after reaching an agreement will members return to the voting procedure. However, Senate Majority Leader McConnell said on Tuesday that talks with the Democratic Party were still deadlocked, which partly dampened market sentiment.

The international oil price soared and fell, and the impact of precious metal market fluctuation on margin dragged down the energy market. By the end of the day, WTI crude oil contract fell 0.8% to 41.61 USD / barrel, while Brent crude oil contract fell 1.1% to 44.50 USD / barrel.

The U.S. Energy Information Agency (EIA) updated its short-term outlook. It is estimated that the WTI crude oil price in 2020 will be $38.50/barrel, up 2.5% from the July forecast; the average price in 2021 is expected to be $45.53, down 0.4% from the previous forecast. The EIA also said it expected US oil production to reach 11.26 million barrels a day this year, down 3.2% from previous expectations, and raised its 2021 forecast by 1.2% to 11.44 million barrels.

European stock markets rose across the board, with the pan European Stoxx 600 up 1.68% to 370.76, the FTSE 100 up 1.71% to 6154.34, Germanys DAX30 index up 2.04% to 12946.89, and Frances CAC40 index up 2.41% to 5027.99. Leisure tourism sector rose 4.5%, leading the market. Germanys ZEW Economic Climate Index rose to a 16 year high of 55.6 at 71.5 in August. German think tank ZEW said the hope of a rapid economic recovery continued to increase. According to the assessment, experts expect to see a comprehensive economic recovery in the future, especially in major domestic industries. The UK lost 220000 jobs in the second quarter of this year, the biggest drop since 2009, according to the latest data released by the office for national statistics on Tuesday. The Bank of England warned last week that unemployment would rise to about 7.5 per cent by the end of the year. Source of this article: Yang Bin, editor in charge of the first finance and Economics_ NF4368

European stock markets rose across the board, with the pan European Stoxx 600 up 1.68% to 370.76, the FTSE 100 up 1.71% to 6154.34, Germanys DAX30 index up 2.04% to 12946.89, and Frances CAC40 index up 2.41% to 5027.99. Leisure tourism sector rose 4.5%, leading the market.

Germanys ZEW Economic Climate Index rose to a 16 year high of 55.6 at 71.5 in August. German think tank ZEW said the hope of a rapid economic recovery continued to increase. According to the assessment, experts expect to see a comprehensive economic recovery in the future, especially in major domestic industries.

The UK lost 220000 jobs in the second quarter of this year, the biggest drop since 2009, according to the latest data released by the office for national statistics on Tuesday. The Bank of England warned last week that unemployment would rise to about 7.5 per cent by the end of the year.