Wall Street otherwise in the red
Snapchat stock posts significant gains
08/31/2022, 10:31 p.m
Even weak US jobs data are not letting investors’ fears of further rate hikes recede. The recovery of the US stock exchanges is again a long time coming. Still, there are winners: like Snap stock.
After several days of losses in a row, the Wall Street postpone the hoped-for recovery again this time. Because of the unclear prospects for the development of inflation and the economy, investors shied away from buying. The US Standard Value Index Dow Jones lost 0.9 percent to 31,510 points. The broad one S&P 500 fell 0.8 percent and the tech-heavy Nasdaq Composite fell by 0.6 percent
Although they fell US jobdate much weaker than expected. According to the private employment agency ADP, 132,000 new jobs were created in the US private sector in August instead of the expected 288,000. This was little support, however, as investors don’t expect it to slow the pace of Fed rate hikes.
The indices have fallen significantly in the past four sessions after the President of the US Federal Reserve, Jerome Powell, was unexpectedly aggressive on Friday about future rate hikes. The central bank will stick with higher interest rates to fight inflation, even if it hurts the economy and the stock market.
Snap stock soars
Things went uphill significantly Snap. The operator of the Snapchat messenger gained 8.7 percent. Because sales are currently increasing at a lower rate than ever before in the company’s history, Snap announced that it would cut 20 percent of its jobs and concentrate on its core business.
HB were down 7.7 percent after the computer and printer maker reported a drop in sales and lowered its outlook. According to the company, the reason for this is declining consumer spending. Hewlett Packard Enterprise (HPE) however, increased sales and profits in the third fiscal quarter. Although HPE also lowered the profit forecast, CEO Antonio Neri also reported “continued demand”. Shares fell 0.4 percent.
The shares of Alibaba up 1.7 percent by JD.com up 3.2 percent after a report that Chinese e-commerce giants are among the first companies selected for inspection by US auditors under a key bilateral financial transparency deal. The aim is to prevent delisting on US stock exchanges.
Oil continues to go down
the oil prices continued their recent downward trend. Brent and WTI grades fell by up to 2.8 percent. The decline in the weekly US inventory data was much sharper than expected. Gasoline inventories even fell to their lowest level in 9 months. A possible new nuclear agreement between the USA and Iran, which would bring additional Iranian oil onto the market, also continued to have a negative effect. In addition, there is still uncertainty as to whether OPEC+ is considering possible oil production cuts. The next OPEC+ meeting on Monday could bring certainty.
Of the gold price suffered from interest rate hikes around the world and the generally firm dollar. The troy ounce of the interest-free precious metal lost 0.8 percent.