U.S. Indices Took A Dive On Wednesday, S&P 500 Corrected After New Highs

U.S. Indices ended trade in the red zone on Wednesday, December 9, touching another historical peak at the beginning of the session. On Wednesday, there was no final decision on the stimulus package: all GOP plans were opposed by House Speaker Nancy Palosi and Senate Leader Chuck Schumer of the Democratic minority. Owing to the expiry of the new economic stimulus plan on Friday, 11 December, it is most likely that the House of Representatives will vote to extend the current program for another week, until 18 December. These occurrences served as an explanation for investors to move to the waiting mode and profit-taking.

The broad-based Standard & Poor’s 500 index lost 0.79% to 3,672.82 points, the blue-chip Dow Jones Industrial Average ended 0.35% lower at 30,068.81 points, and the high-tech industries’ NASDAQ Composite index eased 1.94% to 12,338.95 points.

On Wednesday, a few important macroeconomic statistics were released. The EIA’s volume of crude oil reserves, which increased by 15,189 million barrels compared to the expected decrease of 1,541 million barrels, surprised the industry. Data on the number of available vacancies in the US labor market (JOLTS) was also published by the US Federal Bureau of Labor Statistics. The job openings increased to 6.65 million and surpassed the estimate of 6.3 million.

On the back of the investor’s day, shares of marketing company Nielsen Holdings plc (NLSN) grew 9.13 percent to $19.12, during which the company unveiled a new growth plan. In order to focus on a new business model, the company earlier announced the sale of one of its Nielsen Global Link divisions.

Shares of Lowe’s Companies Inc. (LOW), a company interested in home goods sales, have jumped +5.88% to $160.13 due to the announcement of the Complete Home plan, which involves the introduction of new services for skilled customers. Moreover, Lowe’s firms reported a $15 billion share buyback.

Eli Lilly and Co (+5.83 percent), Ralph Lauren (+3.79 percent), General Electric (+3.92 percent) and Autozone (+3.71 percent) are also the other session leaders.

Despite the approval of the Covid-19 vaccine in Canada, Pfizer stock lost 1.67 percent in trade. For those vaccinated against Covid-19 in the UK, this came amid news of allergic reactions.

LEAVE A REPLY

Please enter your comment!
Please enter your name here