US stocks rally, with the Dow climbing 337 points on debt ceiling optimism

Traders work on the floor of the New York Stock Exchange during the afternoon of December 18, 2014 in New York City.

US stocks rallied on Thursday as investors cheered the announcement that legislators have agreed to raise the federal borrowing limit until December, averting a potentially destructive default on the country’s debt.

The benchmark S&P 500 edged higher while the tech-heavy Nasdaq also ticked up. The Dow Jones Industrial Average jumped more than 300 points.

Here’s where US indexes stood at the 4:00 p.m. ET close on Thursday:

“The outlook for 2022 remains optimistic given markets are still expecting Democrats to ultimately deliver infrastructure spending and President Biden’s economic plan by December,” Edward Moya, senior equity analyst at foreign exchange firm Oanda, said in a note.

He noted that Republican Senator Mitch McConnell’s chess move was “brilliant” as it puts all the pressure back on the Democrats. This, Moya added, increases the likelihood that Democrats run out of time to deliver more spending and tax increases.

Investors are also trying to anticipate when the Federal Reserve will begin tapering asset purchases amid inflationary pressures.

“We believe that inflation will continue to build up over the coming months, peaking close to 5% core CPI early next year before moving lower – an environment that resembles reflation more than stagflation,” Gargi Chaudhuri, head of iShares investment strategy, said in a note Thursday.

The yield on the benchmark 10-year Treasury note rose to 1.575% Thursday from 1.524% Wednesday. Yields and prices move inversely.

US jobless claims totaled 326,000 last week, the Labor Department announced Thursday, coming in below the median forecast of 348,000 from economists surveyed by Bloomberg. It also snapped a three-week streak of gains.

In cryptocurrencies, bitcoin was trading 1.55% lower to $54,121 after breaching $55,000 on Wednesday. Bitcoin’s near 35% rally over the past week comes as investors reassess its appeal as an inflation hedge, JPMorgan said in a note.

Dogecoin spin-off shiba inu continued its monster rally, having risen by over 300% in a week to a $12 billion valuation, according to Coinmarketcap. It has gained around 350% in a month, roughly what bitcoin has gained in a year.

The US Securities and Exchange Commission has recently approved Volt Equity’s ETF, which aims to track companies that hold a majority of their net assets in bitcoin or derive a majority of their profit or revenue from bitcoin-related activities.

Oil rallied after the US said it may not release emergency crude reserves to combat rising gas prices, Reuters reported.

West Texas Intermediate crude oil rose as much as 1.38%, to $7.50 per barrel. Brent crude, oil’s international benchmark, climbed 1.32%, to $82.15 per barrel.

Gold edged lower by 0.47%, to $1,755.89 per ounce.

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Global stocks slide after US equities suffer worst monthly drop since March 2020 on economic woes

A trader works during afternoon trading on the floor of the New York Stock Exchange
Stocks fell sharply in September.

  • Global stocks slid on Friday, after the S&P 500 suffered its biggest monthly fall since March 2020.
  • Investors are facing a range of concerns, from soaring inflation, to the possible collapse of China’s Evergrande.
  • Stronger inflation has sent bond yields sharply higher, making stocks look less attractive.
  • See more stories on Insider’s business page.

Global stocks fell across the board on Friday, after US equities suffered their biggest monthly pullback since coronavirus shook the global economy in March 2020.

S&P 500 futures were down 0.51%, Nasdaq 100 futures were also 0.51% lower and Dow Jones futures had slipped 0.56%.

In Europe, the continent-wide Stoxx 600 was 0.77% lower, while London’s FTSE 100 had fallen 0.9% in early trading.

Asian equities also suffered overnight, with Tokyo’s Nikkei 225 down 2.31%. Chinese markets were closed for the Golden Week holiday.

September was a rocky month for global shares as a number of economic worries came to the fore. Chief among them was a jump in inflation – driven by higher energy prices and supply-chain bottlenecks – which pushed bond yields up sharply.

Inflation pushes up bond yields as investors demand a higher return. Higher bond yields then make the return on stocks – particularly flashy tech stocks whose true earnings potential lies well in the future – look less attractive.

The S&P 500 slumped 4.8% in September, its biggest monthly drop since March 2020. Investors also fretted about disruptions to global supply chains, an international energy crunch, and the looming collapse of heavily indebted Chinese property developer Evergrande.

Read more: A $31 billion investment firm with a killer track record of beating market crashes lays out 4 ways to play a ‘new regime’ that will bring dramatic re-ratings for many top stocks as inflation heats up

Investors hoping October would be a better month were left disappointed, as economic woes continued to weigh on global equities.

On top of the other concerns, markets were fretting about the US debt ceiling, which needs to be raised to avoid the country defaulting on its debts. The House has voted to raise the debt limit but the Senate is unlikely to approve, with Republicans blocking the measure.

“The risk of a more severe correction [in stocks] reflecting these worries remains high – particularly with seasonal weakness for share markets running into mid-October in the US,” said Shane Oliver, head of investment strategy at AMP Capital.

“However, ultimately we see the issues being resolved in a way that does not severely threaten global growth and so with global monetary policy likely to remain relatively easy for some time we continue to see the broader trend in shares remaining up.”

Bond yields, which move inversely to prices, have risen sharply in recent weeks but cooled somewhat in European trading on Friday. The yield on the key 10-year US Treasury note slipped 4.3 basis points to 1.484%.

The dollar index was roughly flat on Friday at 94.25. It has also risen strongly in recently, with investors attracted to US Treasuries by the likelihood that the Fed will soon raise interest rates.

Elsewhere, oil prices slipped back slightly. Brent crude oil fell 0.49% to $77.93 a barrel, having topped $80 earlier in the week. WTI crude slipped 0.71% to $74.50 a barrel.

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US stocks struggle to recover from Evergrande rout while investors await the outcome of Fed meeting

Traders work at the trading floor in the New York Stock Exchange on Aug. 19, 2021.
New York Stock Exchange on Aug. 19, 2021.

US stocks struggled to regain their footing Tuesday following a brutal sell-off sparked by beleaguered Chinese developer Evergrande during Monday’s session. Investors, meanwhile, are awaiting the outcome of the Federal Reserve’s two-day Federal Open Market Committee meeting beginning that kicked off on Tuesday.

The Dow Jones Industrial Average and S&P 5oo both ended lower, while the Nasdaq eked out a gain.

Here’s where US indexes stood at the 4:00 p.m. close on Tuesday:

“Financial markets have Evergrande as the top story and will enter wait-and-see mode until a meaningful update from the Chinese government,” Edward Moya, senior market analyst at foreign exchange firm Oanda, said in a note Tuesday. “The Evergrande story won’t lead to contagion in the US but there are so many questions about who will be protected once China says ‘enough’ and swoops in.”

Evergrande, China’s second-largest property developer, has more than $300 billion in liabilities and could miss key interest payments due Thursday. There are no signs yet that the Chinese government will step in to save the company.

On top of Evergrande concerns, investors are anxious about the Federal Reserve’s potential tapering of stimulus and the risk of a prolonged period of inflation.

While several analysts, including those at BlackRock Investment Institute, do not expect Fed Chair Jerome Powell to announce any policy change this month, they are still keeping a close eye on any signal of how he plans to scale back monetary support, which includes tapering asset purchases.

“We expect the Fed to start normalizing policy rates in 2023, a much slower pace than market pricing for lift-off in 2022 indicates,” the BlackRock analysts said in a note.

Another issue that might be discussed, according to Moya, is the multi-million-dollar stock purchases of Dallas and Boston Federal Reserve presidents Robert Kaplan and Eric Rosengren, which involved purchases of big-name firms like Apple, Alibaba, and Tesla.

“If the Fed struggles to deal with intensifying scrutiny after their ethics review, the FOMC could lose two of its hawkish members,” Moya said.

Elsewhere, Fintech firm Revolut plans to offer commission-free stock trading to US clients as the London-based startup takes on rivals like Robinhood and Square amid a boom in retail investing, CNBC first reported Tuesday.

In cryptocurrencies, the US Department of the Treasury on Tuesday revealed it will sanction Russian-owned Suex for its role in laundering financial transactions for ransomware actors, marking the first time the agency has ever blacklisted a cryptocurrency exchange.

Meanwhile, Binance, the world’s largest cryptocurrency exchange, is shutting down cryptocurrency derivative products for existing customers in Australia by the end of the year, the latest bid by the exchange to appease regulators.

Bitcoin hovered just above $42,000 after a broader cryptocurrency sell-off Monday.

Oil prices rebounded. West Texas Intermediate crude climbed 0.31%, to $70.51 per barrel. Brent crude, oil’s international benchmark, rose 0.88%, to $74.57 per barrel.

Gold jumped 0.56%, to $1,774.99 per ounce.

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Dow falls 614 points as Evergrande fears spark steep sell-off

trader nyse worried chart

US stocks cratered on Monday amid ongoing fears of contagion from the Evergrande debt crisis in China and heightened uncertainty about the US raising its debt ceiling before an October deadline.

The S&P 500 and Dow Jones experienced its worst day since last October, falling nearly 1,000 points at its lowest point. Both indexes saw a more than 5% decline from their September 2 highs.

Evergrande is the second largest property developer in China and has more than $300 billion in liabilities as it fueled its growth over the past decade. But an upcoming debt crunch of more than $7 billion due in 2022 for the highly levered company, along with interest payments due this Thursday has many speculating that the company can’t meet its debts. There are no signs yet that the Chinese government will step-in and aid the company.

Meanwhile, a divided congress has been unable to raise the debt ceiling and Republicans and Democrats are showing little willingness for a compromise. Congress has to raise the debt ceiling by October, or it risks defaulting on its own obligations.

Here’s where US indexes stood at the 4:00 p.m. ET close on Monday:

Here’s everything you need to know about the Evergrande debt crisis, and why it is weighing so heavily on stocks despite it being a known risk factor for years. Former short-seller Andrew Left warned about the property developer in 2012.

The risk-off sentiment in stocks could lead to a prolonged period of heightened volatility as the S&P 500 tests crucial support levels like its 50-day moving average, according to technical analyst Katie Stockton of Fairlead Strategies.

Cryptocurrencies plunged on Monday, with both bitcoin and ether falling more than 5% below key support levels. The sell-off in crypto highlights the heightened correlation between it and stocks during down-periods for the market.

Coinbase fell as much as 6% after it abandoned its crypto-lending product plans, which were subject to a twitter spat by CEO Brian Armstrong, in which he called the SEC’s actions “sketchy.”

El Salvador took advantage of the sell-off in crypto and said it bought an additional 150 bitcoins on Monday, bringing its total holdings to more than $30 million.

Despite the stock market sell-off spurred by the Evergrande debt crunch, three top analysts said this isn’t China’s “Lehman Brothers” moment and the Chinese government can step in to contain the mess and insulate its economy.

Oil prices fell. West Texas Intermediate crude dropped as much as 2.19%, to $70.25 per barrel. Brent crude, oil’s international benchmark, fell 1.79%, to $73.99 per barrel.

Gold jumped as much as 0.65%, to $1,762.70 per ounce.

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A SPAC sell-off has destroyed $75 billion in value over the past 6 months as interest in blank-check deals shrivels

Wall Street
Chinese career agencies promise to help students land top-tier internships

  • SPAC deals are falling from grace as $75 billion of value has evaporated in just six months, according to the Wall Street Journal.
  • Some 75% of the 137 deals that closed by mid-February have fallen below their initial listing price.
  • SPAC investors’ discontent is evident in growing redemptions – cashing in on their right to pull out.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

SPAC deals are swiftly falling from grace as $75 billion of value has evaporated in just six months, according to a Wall Street Journal report.

The collective value of 137 deals that closed by mid-February has plunged 25% since the start of the year, totalling $75 billion in lost value, according to the Journal, citing a Dow Jones Market Data analysis. Some 75% of the deals have fallen below their initial listing price – a marked contrast to the salad days of SPACs when prices would almost always go up.

That compares unfavorably to the Renaissance IPO ETF, which tracks the fortunes of recent IPOs and which lost 12% during the same period. Both trailed the broader S&P 500, gaining about 20% year-to-date.

The SPAC losses were particularly pronounced in green-energy deals that have attracted outsized attention from investors, including from those traditionally focused on fossil fuels.

“Air has come out of the bubble,” Roy Behren, managing member at Westchester Capital Management, told the Journal. “That’s the cost of speculating in companies that have potentially bright but uncertain futures.”

Existing SPACs that have not yet closed deals are increasingly facing a choice between bad and worse. More than 95% of SPACs that have not announced deals are trading below their initial listing price, but it is now common for deal announcements to shrink share price, according to the Journal.

SPAC investors’ discontent is evident in growing redemptions – cashing in on their right to pull out. On average, SPACs that closed in August saw 58% of shares get redeemed, according to SPAC Research data cited by DealBook.

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US stocks slide from record highs amid concerns around the economic impact of rising COVID-19 cases

Traders work at the New York Stock Exchange in New York, the United States, Nov. 20, 2018.
New York Stock Exchange on Nov. 20, 2018.

  • US stocks slipped from record highs as investors grow more concerned about the surge in Delta variant cases.
  • Still, major indexes notched monthly gains, with the S&P 500 up for the seventh consecutive month.
  • “Stocks can’t go up forever,” a strategist said. “This reinforces our belief that in the event of a well-deserved pullback.”
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks slipped from record highs Tuesday as investors grow concerned about the economic impact of rising COVID-19 cases.

Consumer confidence data released on Tuesday fell to a six-month low, indicating that Americans have been less inclined to purchase big-ticket items. US consumers however were more willing to spend on travel and hospitality as lockdown restrictions ease.

The headline consumer confidence index fell to 113.8, worse than the 123 consensus estimate and downwardly revised 125.1 prior reading. Edward Moya, senior market analyst at OANDA, said the reading “should add to the worry that we are seeing the peak with the US consumer.”

Labor market data, meanwhile, is due out Friday. Deutsche Bank’s US economists expect the pace of hiring to slow after a strong July report.

Still, all three indexes notched gains for the month, with the benchmark S&P 500 ending higher for the seventh consecutive month – its longest winning streak since January 2018.

Here’s where US indexes stood at the 4:00 p.m. ET close on Tuesday:

Despite Tuesday’s downturn, US stocks have responded with optimism since Federal Reserve Chairman Jerome Powell last week signaled that tapering asset purchases and easing bond-buying could happen this year, but interest rates would remain low until 2023.

“Stocks can’t go up forever,” Ryan Detrick, LPL Financial chief market strategist, said in a note. “This reinforces our belief that in the event of a well-deserved pullback, it would be an opportunity to buy at cheaper prices.”

With a highly anticipated Federal Open Market Committee meeting next month, on top of the surging COVID-19 cases, investors should be on the lookout for some seasonal volatility in September, which is historically the worst month of the year for stocks, Detrick said.

“We remain in the camp that any weakness, should it occur, could be short-term and likely be contained in the 5-8% range,” he added. “This bull market is alive and well and we would view any potential weakness as an opportunity.”

Zoom plunged as much as 17% in early trading after the company forecast that its revenue will roughly flatline for the rest of the year.

Globalstar fell as much as 14% after Bloomberg reported that its satellite connection technology would not be included in Apple’s upcoming iPhone 13.

Allbirds, the direct-to-consumer sneaker company focused on sustainability, made the first steps necessary to go public on Tuesday with its S-1 filing with the SEC.

In the digital asset space, FTX.US, the American arm of crypto exchange FTX, announced it had acquired derivatives dealer LedgerX as FTX CEO Sam Bankman-Fried pushes crypto to embrace regulation.

The CEO of eToro, Yoni Assia, broke down the four factors the exchange looks at from customer interest to token liquidity. Meanwhile, the number of crypto breaches and fraud is on track to break records in 2021, a study by Crypto Head showed.

The 10-Year US Treasury yield edged up to 1.305%, from 1.284% in the previous session. Yields move inversely to prices.

West Texas Intermediate crude slipped 1.07%, to $68.47. Brent crude, oil’s international benchmark, slid 0.57%, to $72.99 per barrel.

Gold slightly fell 0.19% to $1,815.19 per ounce.

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US stock futures slip after the S&P 500 logs a record high, as traders count down to Fed Chair Jerome Powell’s speech

Jerome Powell hearing
Fed Chair Jerome Powell is set to give a major speech on Friday.

  • US stock futures dipped Thursday after the S&P 500 notched up another record high the previous day.
  • Investors are bracing for Friday’s major speech from Fed Chair Jerome Powell, and for economic data on Thursday.
  • Powell’s words will be scrutinized for any sign about when the Fed might start cutting back its support for the economy.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stock futures slipped on Thursday after the benchmark S&P 500 stock index closed at another record high, as investors awaited the release of economic data and looked ahead to a key speech by Federal Reserve Chair Jerome Powell.

S&P 500 futures were down 0.09% after the benchmark rose 0.22% to an all-time high on Wednesday. Nasdaq 100 futures were 0.19% lower, after the tech-heavy index also closed at a new high. Dow Jones futures were roughly flat.

In Europe, the continent-wide Stoxx 600 fell 0.48% in early trading. Stocks moved broadly lower in Asia overnight, with China’s CSI 300 losing 1.97% “as investors continue to ponder the implications of the country’s regulatory agenda,” Chris Scicluna of Daiwa Capital Markets said.

Stocks have consistently ground higher in the US in 2021, with the S&P 500 achieving 51 record highs. Huge amounts of government stimulus, the economic reopening, and the spread of vaccines have boosted equities.

Yet some investors are worried that inflation is becoming dangerously hot and that growth could be peaking. Economic data due out on Thursday should be closely watched. The second estimate of second-quarter GDP is set to be released, alongside weekly jobless claims figures from last week.

However, the main event for traders and investors this week is Powell’s speech at the virtual Jackson Hole Symposium of central bankers on Friday. The Fed chair’s words will be picked apart for any signs about when the central bank will start “tapering,” or cutting back, its bond purchases.

Analysts are divided about what exactly to expert from Powell, however. Paolo Zanghieri, senior economist at Generali Investments, said: “Despite the strong expectations, Fed Chair Powell’s speech at the Jackson Hole conference will likely be short on details on tapering the Fed’s asset purchases amid persistent risk from rising COVID cases and economic uncertainties.”

Bond yields rose sharply on Wednesday, with Jim Reid of Deutsche Bank saying the jump came “as investors considered the potential pace of tapering over the coming months.”

The key 10-year US Treasury yield, which moves inversely to the price, was roughly flat at 1.341% on Thursday, having stood below 1.3% on Wednesday. The dollar index rose 0.08% to 92.90.

In the oil markets, Brent crude slipped back 0.84% to $70.68 a barrel after a solid run higher. WTI crude, the US benchmark price, declined 0.98% to $67.69 a barrel.

Bitcoin slipped further after crossing the $50,000 level earlier in the week. The world’s biggest cryptocurrency was down 3.6% to $46,947 on Thursday.

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Dow, S&P 500 close at records as investors mull new earnings reports

GettyImages 1213764421

The Dow Jones industrial average and S&P 500 closed at records on Friday as investors digested more quarterly financial reports amid what’s been a strong earnings season overall.

Both indexes posted their second straight weekly gains amid signs of easing inflation and continued corporate profit growth.

Disney posted third-quarter earnings that beat Wall Street’s expectations on Friday. The entertainment juggernaut saw robust sales and profit as its theme parks reopened in the US and lockdown restrictions elsewhere kept consumers attached to at-home streaming. Disney shares were up as much as 5%.

Here’s where US indexes stood at the 4 p.m. ET market close on Friday:

Read more: Goldman Sachs names 31 stocks to buy as the economy reopens despite the looming threat of the COVID-19 Delta variant

“The equity market has thus far endorsed a strong economic recovery story despite the rise of the Delta variant,” David Donabedian, CIO of CIBC Private Wealth, said in a statement. “However, we don’t expect the second half of the year to be as comfortable a market as the first half.”

While we are still in a bull market, Donabedian said the rest of the year will be marked with higher volatility. And if the variant becomes worse, he said the public might start viewing COVID-19 as an economic crisis for the equity market rather than just a public health crisis.

SoFi Technologies fell as much as 15% after the fintech company released mixed second-quarter results and third-quarter revenue guidance that was below analyst estimates. This was its first earnings report as a public company. parent ContextLogic tumbled as much as 29% after the firm turned in second-quarter sales and a per-share loss that missed expectations, prompting a double-downgrade from JPMorgan.

Oil futures dipped after reports from the International Energy Agency and OPEC prompted worries over demand growth.

West Texas Intermediate crude was down as much as 1.9%, to $67.77 per barrel. Brent crude, oil’s international benchmark, fell 1.8%, to $70 per barrel, at intraday lows.

Gold rose as much as 1.5%, to $1,779.34 per ounce.

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US stock futures rise with earnings in view, as investors grapple with economic growth and Delta variant concerns

Stock Market Traders
  • US stock futures gained Tuesday, as investors looked for the robust 2Q earnings season to roll on.
  • Investors weighed concerns the spread of the Delta coronavirus variant and its potential impact on economic growth.
  • Criticism of Tencent in China dragged the stock down and raised fears of further regulatory pressure.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stock futures gained on Tuesday as investors weighed healthy second-quarter earnings reports against concerns about the spread of the COVID Delta variant and its impact on economic growth.

Markets pointed to a return to strength at the open, with S&P 500 futures up 0.37%, Dow Jones futures 0.49% higher, and Nasdaq futures rising 0.14%, at last check at 6:39 am E.T.

Investors appeared to be boosted by a string of robust corporate earnings and the positive progress made by the Biden administration’s infrastructure bill. A fresh slate of quarterly financial updates lies ahead Tuesday, with Eli Lilly, Fiat Chrysler, BMW and Marriott on the docket.

Concerns about the fast spread of the Delta variant in the US and China were rising, as investors assessed the potential for a slowdown in global economic growth associated with higher COVID-19 cases and more lockdowns.

“With a number of US states reinstating mask mandates and tightening restrictions, the optimism of a few weeks ago is now being replaced by doubts as to how resilient the recovery we’ve seen so far this year can remain, as we head into the autumn and the weather starts to get colder,” Michael Hewson, chief market analyst at CMC Markets, commented.

Key Asian equity markets closed lower Tuesday as an increase in COVID cases led to renewed or extended restrictions in the region. Tokyo’s Nikkei 225 lost 0.5%, and the Shanghai Composite declined 0.47%.

Fears about renewed regulatory pressure in China hit markets on Tuesday after a Chinese state-run media outlet described online gaming was “spiritual opium” and “electronic drugs” on Tuesday, prompting fears that Beijing may go after online entertainment providers in another crackdown. The stock price of entertainment heavyweight Tencent fell as much as 10%.

“After the last few weeks, even oblique warnings from authorities are ignored at your peril, and it seems that regulatory risk is alive and well in China still,” Jeffrey Halley, senior market analyst at OANDA, said.

European markets started the session higher, building on Monday’s gains built on upbeat manufacturing and other economic data. Frankfurt’s DAX was up 0.14%, London’s FTSE 100 gained 0.34% and the Euro Stoxx 50 inched 0.16% higher.

The yield on the US 10-year Treasury note rose to 1.199%, up 2.7 basis points. Bonds rallied and yield dropped in the previous session after US manufacturing data came in weaker than expected. Investors are watching for signs of a pullback in economic growth that might shift the Federal Reserve’s view of when and whether to taper its asset purchases.

Oil prices edged higher, recovering from losses prompted by demand concerns linked to COVID-19 restrictions. Brent crude was up 0.48% at $73.24 per barrel, while WTI crude gained 0.46% at $71.59 per barrel.

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Global shares pull back as concern over US growth, Asia tech rout weigh on investor confidence

Traders work on the floor of the New York Stock Exchange
Traders work on the floor of the New York Stock Exchange

  • Global shares fell on Friday after US GDP and unemployment data came in weaker than expected.
  • Investor concern about Chinese regulatory crackdowns, especially in the tech sector, continued.
  • Higher-than-expected inflation readings undermined European markets, despite strong EU growth.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Global shares fell on Friday after US GDP and unemployment data the previous day reflected slower economic growth than expected, while a looming threat of a Chinese regulatory crackdown on tech stocks continued to weigh on investor confidence.

US futures fell, with Dow Jones futures 0.34% down, S&P 500 futures down 0.7% and Nasdaq futures down by 1.16% at 5:43 am E.T.. The benchmark indices neared record highs on Thursday, leaving the S&P 500 less than 0.1% off an all-time peak.

Weaker-than-expected US economic growth in the second quarter and a slower fall in unemployment that many economist had forecast soured investor optimism over the outlook for recovery, analysts said.

Meanwhile, Amazon’s quarterly earnings fell short of expectations, as the e-commerce giant missed quarterly sales estimates for the first time since 2018, while sales and profit forecasts were below expectations, further worrying investors about the economic outlook. The company shares fell as much as 7% in pre-market trading.

Yields on 10-year Treasury notes were last at 1.251%, down by 1.8 basis points ahead of inflation and personal spending data.

Rising Covid-19 cases and Chinese regulatory pressure on tech stocks also weighed on markets. Earlier in the week, Chinese officials had said they would be more considerate of volatility when making regulatory decisions, but the calming words had little lasting impact.

“The fact the tech-heavy Nasdaq futures have led US index futures lower suggests that they, and China, Japan, and South Korean markets are suffering a dose of pre-weekend China regulatory risk jitters,” Jeffrey Halley, senior market analyst at OANDA, said.

Asian markets closed lower on Friday, with Tokyo’s Nikkei 225 falling 1.8%, the Shanghai Composite declining by 0.42% and Hong Kong’s Hang Seng index dropping by 1.28% as a surge in delta variant cases and regulatory concerns dominated sentiment throughout the region.

In Europe, London’s FTSE 100 was last down 0.93%, the EuroStoxx 50 had declined by 0.69% and Frankfurt’s DAX was last down 0.99%. A measure of eurozone inflation rose more than anticipated in July, coming in at 2.2% compared to an expected 2%. This was its highest since October 2018.

The impact of this could not be set off by a strong read of eurozone GDP, which rose 2% quarter-on-quarter in the the three months to June, breaking two straight quarters of contraction, despite initial difficulties with the vaccination rollout, rising delta variant cases and continuing supply-chain issues.

“Looking ahead at 3Q, we would note that the delta variant is causing some delays in the easing of restrictions and that supply chain problems continue to weigh on manufacturing production. Still, we expect growth to come in very strong – currently pencilled in at 2% quarter-on-quarter – as domestic and foreign demand remain very robust.” ING analysts said.

Oil prices fell on Friday, reversing some of the previous day’s losses. Slower economic growth and recovery could indicate lower demand for a longer than expected time. Brent crude was last down 0.31% at $74.87 per barrel, while WTI crude was last at $73.36, down 0.35%.

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