The US stock exchanges recorded another negative session in volatile trading after the losses in the technology sector and the depreciation of AT&T's shares was stronger than positive news from Boeing.
The blue-chip index Dow Jones Industrial Average ended with a fall of more than 600 points, which wiped out the growth since the beginning of the year. The S&P 500 dropped by 3% after the technology and communications sector sank by more than 2%. The technology index Nasdaq Composite finished with decrease of 4.4%, while Facebook, Amazon, Netflix and Alphabet trading in red.
The darker macro picture overshadows the outlook for financial performance in 2019, and this has largely led investors to ignore the strong start of the third-quarter reporting season.
The stocks on Facebook and Alphabet fell by more than 5% and Apple wiped out 3.4%. Netflix's stock dropped by 9%, while the market capitalization of AT&T dropped by more than 8.1%.
The markets have also been under pressure due to a downturn in the housing sector. The ETF SPDR S&P Homebuilders was down by 3.5% after releasing of the data from the ministry of commerce, according to which sales of new homes have reached a two-year low.
Investors struggle with increasing volatility lately. The Cboe Volatility index, which is considered the best measure of fears on the market, is traded at 23 points, marking a growth of over 95% this month.
The government bonds rose as a result of the housing data. The return on 10-year government bonds fell to 3.117%, and 30-year government bonds dropped by 3.336%. The bond yields move in the opposite direction to prices.
The raw materials has revealed new data suggesting that US gasoline and diesel stocks have shrank unexpectedly against a background of seasonal growth in demand for refined products. The futures on US crude oil WTI rose by 0.39 USD to 66.82 USD per barrel as a result of the news. The contracts on the Brent variety continued to move in the opposite direction, falling by 0.86 USD, or 1.13%, to 75.58 USD per barrel.
Posted from my blog with SteemPress : http://financeandmarkets.com/dow-jones-wiped-out-the-growth-since-the-beginning-of-the-year/
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