Wall Street is weakening
Evergrande makes US investors nervous
08/18/2023, 11:16 p.m
US stock market traders shy away from the risk at the end of a week of losses. The central theme remains the same: another rate hike by the Fed is feared. In addition, investors are eyeing the Chinese economy with growing concern.
The US stock exchanges moved only a little on the last trading day of a weak week. The Dow Jones Industrial managed to turn positive: the leading index closed 0.07 percent higher at 34,500.66 points. However, other indices recorded a minus for the fourth time in a row. The market breadth S&P 500 however, fell by 0.01 percent to 4369.71 points. The one shaped by technology stocks Nasdaq 100 lost 0.14 percent to 14,694.84 points. The three major course barometers recorded weekly losses of up to 2.2 percent. Stabilization on Friday was accompanied by a slight recovery in the bond market.
The 10-year yield, which had recently approached its highest level since 2007, fell to 4.25 percent. Bond yields had recently been supported by speculation that key interest rates would continue to rise. According to experts, higher yields make bonds more attractive as an investment alternative to stocks.
Bad news from China caused nervousness: the real estate developer, which has been in crisis for more than a year and a half Evergrande has filed for bankruptcy protection with a US bankruptcy court. Experts fear that the problems in the real estate sector could spread further. US-listed shares of Chinese companies JD.Com and Alibaba fell by 4.7 and 2.9 percent.
SpaceX report puts pressure on Bitcoin
Investors’ hopes that the US Federal Reserve’s tightening of monetary policy will soon come to an end are also fading. “Investors are looking at better-than-expected economic data and saying the Fed probably isn’t tightening enough just yet,” said Art Hogan, chief markets strategist at wealth manager B. Riley Wealth.
A report by the Wall Street Journal, according to which Elon Musk’s space company, SpaceX, has released its entire Bitcoin-sold holdings, meanwhile, put a lot of pressure on the main cryptocurrency. The cyber currency fell by more than five percent to $ 26,164. The previous evening she had temporarily fallen by more than ten percent. Other cryptocurrencies were also down. The Bitcoin Rival Ethereum fell 3.1 percent to $ 1662. Ripple slipped nearly 12 percent to $0.50.
After its recent rally, the dollar in the red, the dollar index lost 0.2 percent with falling market rates. The uncertainty on the markets in combination with the recent strong US data should continue to support the US currency, according to participants. Oil prices recovered somewhat from the recent slump, on a weekly basis the oil price lost 2.3 percent – burdened by the gloomy economic prospects in China. Concerns about the Chinese economy also prevented a clearer recovery, the trade said.