Wednesday , October 20 2021

Dow led to a 600-day drop due to US fear of Chinese trade.


US stocks fell on Thursday, and the arrest of Huawei's top executive, erasing the weak gains of this year on the S & P 500 and Dow Jones Industrial Average, led to increased tensions in Sino-USA. Weak oil prices led to further pressure. .

The arrest of Huawei Technologies Co Ltd, China's top financial officer in Canada, due to its extradition to the United States, has reached an agreement on the 90-day ceasefire time period for Washington and Beijing.

Markets made a mini rally last week until Monday when the Federal Reserve's rate of growth could slow down and signaled to China-US. cease-fire at the weekend.

However, the optimism in a trade decision ended on Tuesday and voiced concerns about the slowdown in US economic growth, with the decline in long-term bond yields, and Wall Street's slippage.

The benchmark Treasury revenue on October 10 was at three-month low on Thursday, and further pressure on the market with the fall in oil prices, if OPEC decides to decline less than expected in crude production.

Ogan Overall, we all have the same questions we did on Tuesday,, said Art Hogan, chief market strategist at B. Riley FBR in New York. Daha News about Huawei once again reveals the uncertainty about reaching an agreement with China. “

The data showed that the US trade deficit jumped to 10-year high in October, and that the tariff measures to narrow the Trump administration's trade deficit were ineffective.

With a 1.93 percent decline in the technology sector, the 11 main S & P sectors were all lower.

Concern for Huawei, one of the biggest buyers of chips, according to research firm Bernstein, reduced the Philadelphia Semiconductor index by 2.30 percent.

Trade-sensitive industrial sector fell by 1.88 percent. While the energy markets decreased by 2.92 percent, the declines in the bond markets were financed by 2.51 percent.

At 11:30, Dow dropped 726.20 points, S & P 500 declined 71.55 points, and Nasdaq Composition fell to 154.85.

The Canadian TSX declined by 395.16 points.

The CBOE Volatility Index, known as Wall Street's seviy fear indicator, “jumped to its highest level since October 30th.

Apple Inc. fell 3.1 percent, and while the largest drift of S & P and Nasdaq, the trading bell tower Boeing Co. fell 1.9 percent on the Dow, down 1.9 percent.

Falling issues have increased to a 6.84-1 ratio in NYSE and an increase from 3,85 to 1 in Nasdaq.
The S & P index recorded two new 52-week highs and the newest at 63, while Nasdaq registered four new highs and 261 new declines.

© Thomson Reuters 2018

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