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Stock market climax weakens on the last trading day of August | Business and Economic News

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As the U.S. debate on dwindling heats up and the return of the coronavirus has led to the reopening of certain places, people are increasingly worried about excessive stock market tensions.

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On the last trading day of August, as investors assessed whether high valuations could withstand the lifting of stimulus measures during the pandemic, the excitement in the stock market weakened.

The Standard & Poor’s 500 Index fell slightly, while European stock markets fell on signals that central banks in the region would start discussing a reduction in bond purchases. After Bloomberg News reported that Wells Fargo & Co. may take regulatory action on the speed of compensation, the decline in financial companies suppressed market sentiment. Data on Tuesday showed that consumer confidence has fallen, and house prices have risen the most in more than 30 years.

Driven by strong corporate profits and moderate monetary policy, the U.S. stock market still rose for the seventh consecutive month-the longest consecutive rise since January 2018. At a time when the return of the coronavirus has delayed the reopening of certain parts of the world, as the dwindling debate heats up, there have been concerns about excessive stock market tensions. The current trading price of the S&P 500 index is close to the highest valuation level since 2000.

“The market is taking a breather,” said Cliff Hodge, Chief Investment Officer of Cornerstone Wealth. After experiencing strong economic data and outstanding corporate earnings, “the market is now trying to cope: well, what’s next?”

According to data compiled by Bloomberg, the S&P 500 has experienced 14 consecutive rises for 7 months or more in the past 60 years. After reaching such a milestone, history shows three results for this meter.

As the index fell, five of them ended next month. Before the end of the continuous rise, the other four subsequent gains did not exceed 3.2%. The other five companies achieved advances of 9.7% or more before the end-including the most recent consecutive increase, which lasted for 10 months and continued until January 2018.

The buying by corporate insiders correctly heralded the bottom of the bear market in March 2020, and they are not afraid to chase a record rebound. According to data compiled by the Washington Department of Services, more than 1,000 executives and executives snapped up their company’s stock this month – the highest level since May last year.

Some corporate highlights:

  • Zoom Video Communications Inc.’s stock price plummeted after the home darling’s sales forecast was lower than some analysts expected.
  • Chinese gaming-related stocks listed in the US rebounded from Monday’s decline, while NetEase and Bilibili rose.
  • Moderna Inc. climbed after a study showed that its Covid-19 vaccine produced more than twice the antibodies produced by similar vaccines produced by Pfizer and BioNTech SE.
  • Allbirds Inc. is advancing an initial public offering as it expands beyond the wool sneakers that have become unofficial footwear in Silicon Valley.

Here are some key events worth watching this week:

  • OPEC + Wednesday production meeting
  • Wednesday Eurozone Manufacturing Purchasing Managers Index
  • Friday U.S. Employment Report

Some major trends in the market:

stock

  • As of 3:15 pm New York time, the S&P 500 Index fell 0.2%
  • The Nasdaq 100 Index drops 0.1%
  • Dow Jones Industrial Average fell 0.2%
  • MSCI World Index has not changed much

currency

  • Bloomberg USD Spot Index has not changed much
  • The euro has hardly changed against the dollar, at 1.1808
  • The British pound remained almost unchanged, at $1.3752
  • The yen has hardly changed at 110.00 per dollar

Bond

  • The 10-year U.S. Treasury bond yield rose by two basis points to 1.30%
  • German 10-year government bond yields rose 6 basis points to -0.38%
  • U.K. 10-year government bond yields rose 14 basis points to 0.71%

commodity

  • West Texas Intermediate crude oil fell 1.1% to US$68.42 per barrel
  • Gold futures rose 0.3% to $1,817.70 per ounce



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