The American market showed an inability to continue yesterday’s upward reaction despite the positive opening, as in the course of the transactions the momentum was lost and the sellers prevailed with the technology titles at the forefront.
In particular, after jumping 600 points yesterday and opening with gains of more than 200 points, the industrial Dow Jones finally completed trading at 33,794 points with small losses of 0.29%.
Similarly, the enlarged S&P 500 closed at 4,363 points, down 0.5%, while as mentioned above, the technologically weighted company gathered the largest share of sales, closing at -1.56% and 13,537 points.
Much of today’s pressure came from Amazon (-2.7%), Facebook (-2.5%) and Tesla (-4.6%), while software makers Okta and Snowflake announced disappointing results today. received a pounding and closed at -8% and -15% respectively.
On the contrary, the defense titles of the utilities and energy companies outperformed, the latter against the background of the consistently high oil prices as the battles in Eastern Europe rage unabated with the invasion of Russia in Ukraine.
“Rising commodity prices are causing great concern in the market, raising fears of stagnant inflation,” said Fiona Cincotta, a senior analyst at City Index. As she explains, “rising energy prices, slowing growth and rapid inflation are not good prospects.”
For his part, Mark Stoeckle of Adams Funds estimates that “volatility will be maintained and will be an issue. We expect oil to move higher and there is no doubt that this will lead to destabilization.”
The data released shortly after the start of the significant session, which showed that the activity of the services sector in the USA declined to a low of a year, seems to return the concerns in the ranks of investors.
In particular, the ISM non-manufacturing index fell to 56.5 points, the lowest level since February 2021, from 59.9 points in January and against estimates for 61 points.
On the other hand, the news from the labor market was positive, as the new applications for unemployment benefits granted by the American states fell more than expected last week, slipping to the lowest level since the beginning of the year.
In particular, the initial applications for unemployment benefits fell by 18,000 to 215,000, compared to estimates for 225,000.
Source: Capital
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