US stocks recorded a significant decline at the end of trading on Thursday, as market indices fell significantly. Many sectors were affected, especially industrials, health services and consumer goods, which contributed to the decline in the markets in general.
At the end of the trading session in New York, the Dow Jones Industrial Average closed down 0.47%. The Standard & Poor’s 500 index also fell by 0.61%, while the Nasdaq index fell by about 0.63%. This decline came after the US Federal Reserve Chairman’s remarks that raised investors’ concerns about the economic outlook.
Despite this general decline, some leading stocks in the market witnessed a significant rise. For example, Walt Disney Company’s stock rose by 6.23%, equivalent to 6.40 points, to reach $109.12 at the market close. While Chevron Corp’s stock witnessed an increase of 1.94%, closing at $161.80.
Apple stock rose 1.38% to $228.22 at the end of the session, remaining a favorite asset among investors.
These market moves come after the Federal Reserve Chairman’s remarks that raised widespread concerns among investors. He indicated that monetary policy may remain tight for a longer period than expected, reflecting concerns about future economic impacts. In this context, investors are still adjusting to the volatile economic environment. Concerns about inflation are expected to increase in the coming months, which may pressure global stock markets. These factors are expected to affect market trends in the coming periods, especially with the anticipation of more economic data.
On the other hand, analysts believe that the current situation requires caution in dealing with investments. Investors should closely monitor economic changes to avoid potential losses. It is believed that some sectors may witness more volatility, while new opportunities may emerge in other sectors over time.
The Nasdaq index witnessed strong performance from some stocks
As for the stocks that witnessed weak performance at the end of trading today, Salesforce Inc. stock fell by 2.95%, or 10.07 points, to close at $331.65. Also, Cisco Systems stock fell by 2.13%, or 1.26 points, to reach a price of $57.92 at the close. UnitedHealth Group stock closed down by 2.10%, or 12.72 points, to reach $593.15. On the other hand, some stocks that recorded strong performance during the day stood out. Tapestry Inc. stock recorded a significant increase of 12.80% to close at $57.82, while Wynn Resorts Ltd.
stock rose by 8.65% to reach $93.22 at the end of the session. Also, First Solar stock witnessed an increase of 7.14% to close at $195.14. On the other hand, the Nasdaq Composite saw some strong performances. Molecular Templates In surged 89.07% to close at $0.61. VivoPower International PLC continued its rise by 70.89% to close at $1.35. Omeros Corp surged 65.87% to close at $6.95.
On the other hand, there were some weaker performing stocks today. Sow Good Inc plunged 56.78% to close at $4.24. **Wellchange Holdings Co Ltd plunged 47.47% to $4.15, while Nuvectis Pharma Inc plunged 46.30% to close at $5.73. In terms of stock movement in the US stock exchanges, the number of declining stocks on the New York Stock Exchange exceeded the number of advancing stocks, as 1,756 stocks recorded declines compared to 1,049 stocks that rose, while 83 stocks remained unchanged. As for the Nasdaq Stock Exchange, 2,252 stocks declined, while 1,075 stocks rose, while 108 stocks remained stable at the same value.
Markets fluctuate amid sharp movements in futures contracts
Financial markets witnessed a wide range of movements at the end of trading on Thursday, with notable movements in various sectors. The Voltality Index, which measures the implied standard deviation of options on the S&P 500 Index, rose by 2.07% to close at 14.31 points. This rise reflects the increased volatility in the markets, which reflects a state of anxiety among investors.
In the commodities market, the December gold contract fell by 0.63%, equivalent to $16.40, to close at $2,570.10 per ounce. This decline came amid increasing pressure on gold with the rise in US bond yields, which prompted investors to move away from precious metals.
In the oil market, WTI crude oil for December delivery recorded a slight increase of 0.28%, equivalent to $0.19, to close at $68.62 per barrel. In contrast, Brent crude for January delivery rose less, by 0.22% or $0.16, to close at $72.44 per barrel.
In currency markets, the EUR/USD pair remained stable, rising by 0.38% to reach 1.05. While the USD/JPY pair continued to make gains, rising by 0.53% to reach 156.27, indicating continued pressure on the yen amid market sentiment.
As for theUS Dollar Index, it traded higher by 0.44%, to close at 106.84. This rise came at a time when the US dollar is witnessing strong demand amid global economic uncertainty, in addition to rising US bond yields.
Future Market Trends
All eyes are now on upcoming economic data that may help determine the direction of markets. Inflationary pressures continue in many economies, and financial market volatility is expected to persist. In this environment, investors should remain cautious and closely monitor interest rate and inflation movements. Moreover, central banks around the world continue to pursue tight monetary policies to combat inflation.
