September 26, 2022

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Strong decline in Wall Street after the crushing collapse of macroeconomic numbers

Strong decline in Wall Street after the crushing collapse of macroeconomic numbers

In the penultimate trading day of the week, stocks were once again pointing lower relative to the major indices on Wall Street. During the morning, a number of macro figures were presented from the US economy, sending Wall Street volatility.

Over the course of the day, all major indices gradually fell, and when Wall Street closed, the indicators looked like this:

  • The Standard & Poor’s 500 Index fell 1.14 percent
  • Industry-dominated Dow Jones 30 Index down 0.56%
  • The heavy Nasdaq Composite Index fell 1.43 percent

And so the development reflects on Wednesday’s cautious rally, with the S&P 500, Dow Jones 30 and Nasdaq Composite up 0.34 percent, 0.1 percent and 0.74 percent, respectively.

Strong price drop after acquisition news

Among the companies that excelled on Thursday were software company Adobe, known for its PDF and Photoshop tools, with a drop of just 17 percent. The company, which has different accounting years, came out Thursday with figures for the third quarter — which, among other things, showed revenue growth of 13 percent compared to the same period last year, he writes. The Wall Street Journal.

At the same time, the company lowered its earnings estimates to a level lower than what analysts on Wall Street had expected.

In the quarterly report, the company also revealed that it had agreed to buy software company Figma for about $20 billion — Adobe’s largest ever acquisition.

Settlement is done through half for half in shares and cash.

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The Wall Street Journal I also mentioned That Apple, the world’s largest company measured by market value, has overtaken Tesla as the company with the most short exposure on Wall Street. There are now short positions worth a total of $18.4 billion tied to the company’s stock, the newspaper wrote.

On Thursday, the stock price was down about 2.2 percent.

So far this year, Apple’s stock price has fallen to just under 15 percent this year, well below what other tech giants such as Google’s Alphabet and Amazon have done.

– Not impressive

On Thursday afternoon, US public agencies released a number of aggregate numbers. This assistance provides a bit of a state update from the US economy – Michael Schumacher, a macro strategist at Wells Fargo, refers to the recent numbers as “non-imaging”

Perhaps the most important figure this time around, retail trade, showed growth of 0.3 percent month over month – while growth of about 0.0 percent was previously expected.

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Meanwhile, industrial production in August fell 0.2 percent month-on-month, while growth of 0.1 percent had been forecast in advance.

The number of first-time applicants for unemployment benefits last week was also lower than expected, with the 213,000 figure being the lowest since May, according to Trading Economics.

The economy doesn’t appear to have descended into the abyss — and that removes some momentum from the argument that the Fed will raise interest rates by 100 basis points, says Michael Schumacher, a macro strategist at Wells Fargo for CNBC.

Inflation figures triggered forecasts of 100 basis points

After Tuesday’s surprisingly high inflation numbers for August, a number of economists are calling for the Federal Reserve to increase its benchmark interest rate by 100 basis points – one percentage point – in its rate decision next week.

Economists at financial firm Nomura were among the first to come up with such a prediction, according to the report Market Watch:

“We continue to believe that the market underestimates how entrenched inflation is in the United States, and how much response the Fed might be needed to ease inflation,” Nomura economists wrote in a report.

The last time the Fed took such a drastic step was in the early 1980s, according to MarketWatch.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using links that lead directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.

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