AUS
NZ
UK
CA
USA
IND
Summary
- US stock markets ended in red on Wednesday
- While Nasdaq Composite concluded on a positive footing, the main stock indices DJIA and S&P 500 closed marginally lower
US stock markets ended in negative territory on Wednesday after opening largely flat in the morning trades. The key stock indices, Dow Jones Industrial Average (DJIA) and S&P 500, retraced back from their respective record highs. The subdued macroeconomic data weighed on the markets as the government reported an unanticipated increase in the weekly jobless claims. The S&P 500 index came down 5.76 points, 0.2%, ending at 3,629.65, while the DJIA slumped 173.77 points, 0.6%, at 29,872.47.
Reinstated Covid-19 fears steer fall
The prevailing volatility in the stock markets seemed to have eased partly due to the clear outcome from the US presidential elections with the Democratic Party candidate Joe Biden registering an explicit victory. There is optimism amid the investors along with the positive news of different biotech and pharma companies reporting the efficiencies of their respective vaccine on the basis of Phase 3 clinical trials.
The tightened reality due to the persisting worries over the rising Covid-19 cases, the uncertainty in the businesses and the hardships amid the middle-income earners have had a downcast impact on the investors’ sentiments. The fears regarding job losses have increased as the UK might impose the next set of restrictive measures that are going to affect the apparently recovering labour market.
DJIA (25 November)
S&P 500 (25 November)
Notably, the technology heavy Nasdaq Composite registered a considerable gain as the index closed 57.62 points or 0.48 per cent, higher at 12,094.40 on Wednesday.
Nasdaq Composite (25 November)
(Source: Thomson Reuters)
Markets ahead
November has been quite good so far for the stock markets with the existing set of global cues. Now the countries are gearing swiftly to procure the coronavirus vaccine after their successful clearance and approval in the Phase 4 & 5 to ascertain a definite number of doses for their respective front line workers and the staff deployed in the healthcare industry.
However, the ailing economy and challenging business environment frequently develop uncertain circumstances. The stock markets have seemingly factored in the volatility arising due to the upcoming global and domestic factors as the key stock indices have been rising for the last few weeks.
The DJIA touching a psychological mark of 30,000 for the first time in history, that too in the pandemic-led situations and market dejection is a sign of positive run in the near future. Interestingly, investors have a positive notion with regard to the markets from the present levels. According to a market poll by news agency Reuters, the broader benchmark S&P 500 is poised to gain as much as 9 per cent from the present level till the end of 2021.
