US markets closed with weakness amid heavy selling on Friday. US Markets: Despite good economic data, US markets were under pressure due to increased corporate tax rates, increased risk of delta variants of COVID-19 and concerns over the possibility of a change in the US Fed’s timeline on the asset purchase program.
All three major US stock indices declined in Friday’s trade. A rise in the US Treasury yield also reflected on the market. Due to which there was a huge decline in Nasdaq Composite.
Even on a weekly basis, US markets remain under pressure. The S&P-500 index has seen its biggest weekly decline since February. David Carter of Lenox Wealth Advisors of America says that the market is showing its effect on the possibility of increase in tax and tightening of monetary policies. Apart from this, the fear of slowdown in economic recovery due to increasing cases of corona is also showing its effect on the market.
The government’s steps taken for reforms filled the market, good figures also showed its effect
In yesterday’s trade, Dow Jones closed down 166.44 points or 0.48 percent. On the other hand, the S&P 500 closed at 4,432.99, down 40.76 points, or 0.91 per cent, while the Nasdaq Composite closed at 15,043.97, down 137.96 points, or 0.91 per cent. The S&P 500 index closed below its 50 DMA yesterday.
It is worth noting that till now this level was acting as a strong support for this. Of the 11 major sectors in the S&P 500, except healthcare, all closed in the red. In this too, the material and utility sector suffered the most.
Covid-19 vaccine makers Pfizer Inc and Moderna Inc saw a decline of 1.3% and 2.4%, respectively. The decision to hand over the booster dose issue to an independent panel had an impact on these stocks.
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