US Stocks Test on Fed Rates and Global Growth Concerns
$DIA, $SPY, $QQQ, $RUTX, $VXX
- The S&P 500 index closed just above its 200-Day MA, a Key indicator of long-term price trends.
US stocks opened lower as Chinese stocks fell overnight, sparking concerns about the impact of trade tensions on China’s economy.
Plus, concerns mounted over the possibility of strained relations between the US and Saudi Arabia, further denting investors’ appetite for risk amid global trade tensions and rising interest rates.
The benchmark S&P 500 index closed just above its 200-Day MA, a Key indicator of long-term price trends.
S&P 500 technology and consumer discretionary stocks fell more than 2%, as did the tech-heavy NAS. Among the S&P’s major sectors, only utilities and real estate, considered defensive, avoided losses.
US stocks declined further after US Treasury Secretary Steven Mnuchin pulled out of an investor conference in Saudi Arabia as the White House awaited the outcome of investigations into the disappearance of Saudi dissident Jamal Khashoggi.
Secretary Mnuchin’s decision sparked worries of potential strain in US-Saudi relations. Investors raised concern that if Saudi Arabia were sanctioned, it could restrict Crude Oil supply and prompt a quick rise in energy prices.
In energy, WTI Crude Oil extended Wednesday’s slide, settling 1.4% lower at 68.71 bbl, marking a 1-month low. The Crude Oil-sensitive energy sector ended 0.5% lower.
Further, Concerns over rising interest rates following Wednesday’s release of the FOMC’s hawkish mins from its September meeting also pressured Wall Street’s major indexes.
Thursday, the major US stock market indexes came in at: DJIA -327.23 at 25379.45, NAS Comp -157.56 at 7485.33, S&P 500 -40.13 at 2768.92
Volume: on all US exchanges saw 7.79-B/shares exchanged.
- NAS Comp +8.4% YTD
- S&P 500 +3.6% YTD
- DJIA +2.7% YTD
- Russell 2000 +1.6% YTD
Decliners outnumbered advancers on the NYSE by a 3.47-to-1 ratio, and on the NAS, a 3.26-to-1 ratio favored decliners.
The S&P 500 posted 5 new 52-wk highs and 36 new lows
The NAS Comp recorded 16 new highs and 128 new lows.
HeffX-LTN’s US Major Stock Market Indexes Technical Analysis