Falling rates on Wall Street
The good mood on Wall Street is crumbling again, many traders are securing profits, prices are falling. One of the reasons for this is Trump’s recent attacks on China.
Profit-taking has shaped trading on the US stock exchanges. So, The course drivers of the past few days lost strength. Hopes of progress in the search for a coronavirus vaccine have been dampened; as have expectations that the economy will rebound as the pandemic restrictions are eased.
Instead, the continued simmering tensions between the United States and China depressed sentiment. Late Wednesday, US President Trump again accused China of misinformation and propaganda attacks. Besides, the US Senate has passed a law that could make a listing of Chinese companies in the United States. It was no use that the President’s economic adviser, Larry Kudlow, told the Washington Post that the China-US phase 1 trade agreement was “intact” and there was no intention to renegotiate.
All of the trade rhetoric is fueling uncertainty
” All of the trade rhetoric is fueling uncertainty in a market that is already plagued by uncertainty,” said Justin Onuekwusi of Legal & General Investment Management. That could lead to greater fluctuations.
Besides new economic data showed that the US economy is not doing well. Last week; more people applied for unemployment benefits than expected for the first time, albeit less than in the previous week. The Philadelphia Fed index was lower than expected in negative territory in May; even though it improved significantly compared to the previous month. The Markit purchasing manager indices for manufacturing; and non-manufacturing recovered somewhat more in May than economists predicted but still remained well; below the expansion threshold.
The Dow Jones index lost 0.4 percent to 24,474 points. The S&P 500 fell 0.8 percent and the Nasdaq composite 1.0 percent. 1,554 (Wednesday: 2,361) course winners were seen and 1,379 (587) losers. 79 (57) titles closed unchanged.
Alphabet went down 0.2 percent.
On the corporate side, Apple and Google provide topics of conversation. The two technology groups have provided health authorities; around the world with a platform to track down potential Corona contacts to contain the Corona pandemic. “As of today, our technology is available to health authorities,” they said. So, With the help of Bluetooth technology, tracking apps are designed to ensure that contact persons; for people infected with Corona can be found and informed more quickly. Therefore, Apple closed 0.8 percent in the red, shares of Google’s parent company, Alphabet, went down 0.2 percent.