Thursday's session on Wall Street ended with declines in the main indexes, despite increases in technology companies led by Nvidia and Oracle. The US Senate once again failed to pass the provisional budget.
Dow Jones Industrial lost 0.52% at closing. and amounted to 46,358.42 points. The S&P 500 lost 0.28% at the end of the day. and amounted to 6,735.11 points. The Nasdaq Composite fell 0.08%. up to 23,024,626 points The Russell 2000 mid-cap index is down 0.61%. up to 2,468,848 points The VIX index increases by 0.80%. up to 16.43 points
During the session, the S&P 500 and Nasdaq indices recorded their highest intraday levels ever, but ended the day with declines.
“Of course, the market has been rallying since the April crash, which may lead some to believe it is overheated and call for some calm when this is a classic time of buying on a dip,” said David Wagner of Aptus Capital Advisors. In his opinion, the market is still developing, which may cause some volatility. “There are reasons to be optimistic, but I wouldn't be surprised if there was more volatility,” said Kevin Mahn of Hennion & Walsh Asset Management.
On Thursday, the US Senate once again failed to pass the provisional budget. Thursday is the ninth day of the US government shutdown. The prolonged crisis threatens to prevent soldiers and officials from paying their salaries on time.
Investor fears that the shutdown will have a negative impact on the U.S. economy have already begun to materialize. On Wednesday, the IRS announced that as a result of the government shutdown, it intends to place almost half of its employees on forced leave. Additionally, a shortage of air traffic controllers caused the FAA to delay flights in the United States.
JPMorgan CEO Jamie Dimon said there is an increased risk of a significant correction in the U.S. stock market over the next six months to two years. He pointed to geopolitical tensions, government spending and remilitarization around the world as factors that could lead to it.
“Sentiment seems to be a bit volatile. We seem to lack a solid basis for any upward movement we are seeing as we are not receiving macro data from the US,” said Fiona Cincotta, senior market analyst at City Index.
Market optimism will now be put to a serious test as earnings season begins, with Wall Street financial institutions including Goldman Sachs Group and Citigroup set to release their reports next week.
“Given how asymmetric expectations have become and how high valuations have become, I think investors are now solely focused on earnings, trying to see if earnings are actually keeping up with valuations,” said Aidan Yao, a strategist at Amundi Investment Institute.
The head of the New York Fed, John Williams, said in an interview for the New York Times that he supports further interest rate cuts this year, although he did not specify by how much.
Like other Fed officials, he expressed concerns about the weakness of the labor market, while noting that inflation still needs to be watched closely.
Stocks of technology companies went up on Thursday.
Oracle shares rose 3%. According to Baird, Oracle has prepared to take advantage of the popularity of artificial intelligence, which means big profits for investors.
Nvidia's stock increased by nearly 2%.
Shares of companies mining rare earth metals and critical minerals also rose after China tightened export restrictions. Ramaco Resources rose over 11%, Energy Fuels over 9% and USA Rare Earth 15%. MP Materials and Lithium Americas increased by approximately 2 percent each, and Trilogy Metals increased by nearly 4 percent.
PepsiCo shares rose over 4%. after beating Wall Street expectations for third-quarter revenue and earnings, driven by stable U.S. demand for energy drinks and soda. The company has named Steve Schmitt, a Walmart executive, as its new chief financial officer.
Shares of Delta Air Lines rose more than 4%. The company presented an optimistic forecast for the current quarter, publishing better-than-expected earnings for the third quarter.
In turn, United Airlines gained over 3%. American Airlines and JetBlue Airways lost more than 1 percent, respectively. and nearly 3 percent
Costco Wholesale rose 3%. a day after the publication of sales data for September.
Ferrari's stock dropped by 15 percent. after the carmaker announced pessimistic forecasts.
Shares of Lowe's Companies, a home furnishings retailer, fell more than 1%. and are on track to record their ninth consecutive losing week.
On the oil market, WTI contracts for November are down by 1.73%. to USD 61.47 per barrel, and December Brent futures fall by 1.65%. up to USD 65.16/b. (PAP Business)
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