Dow Jones closes in the red: Truss’ resignation spoils investors’ buying mood

Dow Jones closes in the red
Truss’ resignation spoils investors’ buying mood

The resignation of Prime Minister Truss is a “disaster” not only for the British people, but also for US market analysts. The imponderables in the United Kingdom unsettle Wall Street – many courses wobble.

Due to uncertainty about the future development of the British economy, investors are reluctant to invest in Wall Street. A few hours after British Prime Minister Liz Truss announced his resignation, the US standard index fell Dow Jones and the tech-heavy Nasdaq by about 0.3 percent each to 30,333.59 or by 0.6 percent to 10,614.84 points. The broad one S&P 500 remained 0.8 percent down at 3665.78 points.

Nike 86.83

“Truss was undoubtedly a complete disaster and I’m not sure exactly who is going to calm the country down at this point,” wrote market analyst Craig Erlam of brokerage house Oanda. There will be calls for new elections, but that cannot provide security or leadership for the country in the midst of a crisis. “It seems that there are only bad options on the table.” At the same time, the reporting season remained in focus.

Many important balance sheets, such as those from Apple and Microsoft, will not come until next week. Analysts also remain divided on how to interpret previous reports. “So far, about two-thirds of the companies from the S&P 500 that have reported their results have beaten earnings expectations,” wrote Konstantin Oldenburger of broker CMC Markets. However, chief market strategist at wealth manager B. Riley Wealth, Art Hogan, said these results “placed themselves in the ‘better than feared’ category.”

Investors were also far from reassured by weekly initial US jobless claims, which could provide clues to possible monetary easing. Positive forecasts from IBM and AT&T offset the declines Tesla and built on Wednesday’s successes from Netflix and Procter & Gamble. Despite sales and profit growth, the e-car maker was unable to dispel investor concerns about skid marks from the economic downturn, and the share fell by 6.65 percent.

At the same time, the payment service provider fell Western Union 5.68 percent to a ten-year low after a disappointing forecast for 2023. Also the shares of the sporting goods manufacturer Nike fell by a good 1.96 percent after German rival Adidas had to significantly scale back its profit and sales expectations for the second time in three months.

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