Asian markets plummeted following the fall of Wall Street
Asian markets fell on Friday after Wall Street had its worst day since June as investor growth fell after a record high.
Nikkei 225 NIK,
Fell 1%, Hong Cheng HSI.
Lost 1.3% in Hong Kong. Australia’s S & P / ASX 200 XJO,
SHCOMP, 2.7% and Shanghai composite code
Fell 1%. Gospi 180721 of South Korea,
Indexes, down 1.6%, at Taiwan Y9999,
, Singapore STI,
, Malaysia FBMKLCI,
And Indonesia ZakitX,
The U.S. benchmark S&P 500 dropped 3.5%, its biggest loss in three months, and the Nasdaq fell 5%, with high-flying technology companies falling after several months of spectacular gains, with little to no regional change to change the course of the market.
There seemed to be no obvious catalyst for sales, the economic data has come roughly where the market expected and no companies have issued advance warnings. But the market felt a breather, analysts said.
There is still a lot of money going down through the financial systems with the Federal Reserve and many central banks, while keeping interest rates very low.
“While I do not think this is a healthy solution, getting rid of some short-term speculative lungs will provide the best conditions for engaging with the cash wall as we know the central bank is not going anywhere anytime soon,” OxyCorp’s Stephen Innes said in a statement.
Apple completes acquisition of Wall Street technology shares with AAPL on Thursday
8% decline. Amazon AMZN,
4.6% and Facebook lost FB,
Investors have bet that those companies are making huge profits as people spend more time online with their devices during epidemics. Because many Americans work remotely and students learn online, they have set aside high market values for new-look loved ones like Zoom Video Communications.
Even with Thursday’s losses, Apple is up 64.7% year-over-year, while Amazon is up 82.3%. Zoom gain for the year is still 460.4%.
“There is very little justification other than ecstasy (moving upward in these stocks),” said Mark Hackett, head of Nationwide Investment Research.
These gains are based on “very optimistic speculations” about the impact of the virus on the economy and the chances of Congress and the White House coming up with another economic relief package.
The number of Americans who applied for unemployment benefits fell to 881,000 last week, which is slightly better than economists expected, but companies are still allowing more workers than they saw in the Great Recession. So the jobs picture remains very dark, with tens of thousands of Americans still unemployed.
Investors will be more focused on Friday when the Department of Labor releases its August work report. The US economy created 1.4 million jobs in August, compared to 1.74 million in July, according to a factset study by economists.
Dow Jones Industrial Average DJIA,
It was down 2.8% to 28,292.73. A day earlier it had crossed 29,000 for the first time since February.
S&P500 Index SPX,
It lost 125.78 points to close at 3,455.06 points. Technology-rich Nasdaq COMP,
598.34 points, down 11,458.10 points.
In the energy trade, the US benchmark crude CLV20,
At the New York Mercantile Exchange, e-commerce was trading at $ 41.08, 29 cents a barrel. It was down 14 cents at $ 41.37 on Thursday. Brent crude BRNX20,
, The international standard, was down 28 cents to $ 43.79 a barrel.
The yen fell to 106.16 Japanese yen from 106.18 yen late on Thursday.
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