FLASH: The S&P 500 reclaimed its 200-Day MA (2776) after falling below the Key technical mark during the day and bouncing Wednesday
US stocks declined Wednesday, with the S&P 500 and NAS Comp closing just above Key support marks, as worries that a lengthy US-China trade war would crimp global growth pushing investors into the safety of T-Bonds.
Trade tensions between the 2 largest economies in the world showed little signs of relaxing as Chinese newspapers warned that Beijing could use rare earth elements to strike back after President Trump remarked Monday that he was “not yet ready” to make a deal with China over trade.
Rare earths are a group of 17 chemical elements used in everything from high-tech consumer electronics to military equipment. The US has more rare earths than China, but the mining expense is much higher, so years ago China was given the nod to produced them, that could well change now.
Notably, the fed funds futures indicated that traders now see a 58% chance the central bank will lower policy rates by at least a Quarter of a percentage point at its 17-18 September meeting, compared with a 50% likelihood late Tuesday. The Fed pays attention to the market in monetary policy matters.
Each of the 11 major S&P sectors were in the Red, with utilities the poorest performer.
Wednesday, the major US stock market indexes finished at: DJIA -221.36 at 25126.41, NAS Comp -60.04 at 7547.28, S&P 500 -19.37 at 2783.02
Volume: Trade on the NYSE came in at 824-M/shares exchanged
- NAS Comp +13.8% YTD
- S&P 500 +11.0% YTD
- Russell 2000 +10.5% YTD
- DJIA +7.7% YTD
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Neutral in here.
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