Dow Struggles as Bears Find Joy on Stalling Stimulus Progress By

Dow Struggles as Bears Find Joy on Stalling Stimulus Progress

© Reuters.

By Yasin Ebrahim – Wall Street struggled on Friday, as better-than-expected job gains were cast aside by a lack of progress among lawmakers on the next round of coronavirus stimulus and souring U.S.-China trade relations.

The fell 0.26 %, or 69 points. The slipped 0.30%, while the fell 1.21%.

The US economy added a better-than-forecast 1.76 million jobs in July, reinforcing investor expectations that the labor market remains steady despite recent data including a weaker jobless claims report earlier this week suggesting otherwise.

But a lack of progress among lawmakers on another pandemic stimulus relief, which is key to sustaining the U.S. economic recovery, prompted investors to rein in their bullish bets.

House Speaker Nancy Pelosi reportedly said an offer to reduce the $3.4 trillion package by $1 trillion was rejected by the White House, marking a blow to hopes of lawmakers meeting a self-imposed Friday deadline to resolve key sticking points.

As well as the slow pace of negotiations on Capitol Hill, rising U.S.- China trade tensions – in the wake of President Trump’s decision to target Chinese tech – weighed on investor sentiment.

President Donald Trump on Thursday issued executive orders against Chinese tech firms TikTok and WeChat, which he claimed would curb the “threat” they pose to U.S. national security.

The sluggish day on Wall Street was exacerbated by weakness in tech stocks, which have led much of the rally since the recent lows seen in March.

Facebook (NASDAQ:) sidestepped the broader market weakness, while the rest of the of the so-called Fab 5 floundered, with Alphabet (NASDAQ:), Amazon (NASDAQ:), Apple (NASDAQ:), and Microsoft (NASDAQ:) nursing losses.

Energy also played its role in pressuring the broader market, falling 1% as oil prices look set to the end the day in the red as U.S.-China tensions added a layer of uncertainty to the crude demand outlook.

On the earnings front, Uber Technologies (NYSE:) slumped more than 5% following a wider-than-expected loss in the second quarter as its core ride sharing business saw bookings plummet 73% amid pandemic-led weakness.

T-Mobile US (NASDAQ:) popped 6.5% to hit new 52-week highs after the wireless provider delivered better-than-expected quarterly earnings and said it had usurped AT&T (NYSE:) as the second biggest mobile carrier in the U.S.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.