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US STOCKS-S&P, Nasdaq dragged down by Micron's downbeat outlook

Added: (Tue Oct 01 2019)

Pressbox (Press Release) - In Fridays trading session we saw both the Nasdaq and the S&P 500 slide downwards, the main cause for the decline can be attributed to Microns pull downward after the United States based chip maker blamed increasing China and U.S trade tensions for their less than attractive first quarter profit forecast, however gains in financial sector kept the Dow in the green for the session.
Shares in the American financial services provider Wells Fargo & co rose 4.4% and were among the sessions top gainers after the lender announced their move to appoint banking veteran Charles Scharf as their new CEO. The news of this new management boosted the bank sector as a whole which saw an incline of 1.43%, and the broader financial sector saw positive movements with a rise of 0.65%.
The downside to the session saw the chip sector taking the brunt of the force with Micron Technology Incorporated falling almost 10% which in turn caused a 1.2% fall in the semiconductor index. Positive news came from the upbeat comments made on trade from China's foreign minister, which helped offset some of the shock the markets faced after the announcement of an impeachment inquiry into the U.S President Donald Trump, which also contributed to losses.
With Trade talks still at the center of market disruption, the markets are eagerly waiting high level trade talks between Washington and Beijing next month. However global analysts, and traders are skeptical, and have little faith that the planned talks will result in a full scale resolution within the next quarter. Recent Data has shown that U.S consumer spending saw a very slight increase in August, suggesting that the economy may be seeing a slow in the main growth engine, after rapid inclines in the second quarter.
It also is apparent that orders for vital U.S made goods saw an unexpected fall in August, however the core PCE price index, the Federal Reserves predetermined inflation measure saw a rise to 1.8% in August, the biggest rise in prices since the start of the year. This year has been great for the markets, amid trade discussions, and what we are seeing now is a short term lull which should trigger a huge bounce back in the coming weeks.

Xie Lu Wang
ILA International
Info@ilainternational.com



Submitted by:ILA International
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