US exchanges closed the week with a fall for a number of reasons
On Friday, US exchanges closed lower amid news of the Treasury Department’s request for unused anti-crisis funds allocated to the Federal Reserve. Another important factor for the decline was information about the increase in the number of new COVID-19 infections worldwide.
As a result, the Dow Jones and S&P 500 indexes showed their first weekly decline in the past three weeks. At the close of the stock exchange in New York, the Dow Jones Industrial Average fell by 0.74% to 29265.57 points, the NASDAQ index by 0.40% to 11856.85 points, and the S&P 500 broad market index by 0.66% to 3558.18 points.
Earlier, Treasury Secretary Steven Mnuchin demanded that the Federal Reserve return unused $455 billion from loan programs under the allocated package of Economic Assistance Cares Act in 2020. These loan programs expire on December 31.
In March of this year, the United States authorities passed a bill to allocate $2 trillion to support the economy in connection with the Coronavirus pandemic. The state program provided for the allocation of $500 billion for all kinds of emergency lending mechanisms through the Federal Reserve, as well as loan guarantees.
Nevertheless, the head of the Democratic minority in the US Senate, Chuck Schumer, said on Thursday that the Republican majority leader Mitch McConnell agreed to resume negotiations with Democrats on a new stimulus package for the US economy amid the second wave of COVID-19 in the country.
The news about the uncontrolled increase in the number of Coronavirus cases was an additional blow to the mood of investors. According to Johns Hopkins University, on Friday, the number of infected increased by more than 187 thousand in the United States and once again slipped a record high. Over the past seven days, the average daily increase in new infected people in America was 165 thousand, which is 24% higher than the figure recorded a week earlier.
The US stock markets took the final negative course after getting acquainted with the deteriorating dynamics from the oil, gas, industry and finance sectors.
As a result, at the close of trading on the New York stock exchange, the number of securities that fell in price (1652) exceeded the number of those that rose in price (1243) and the quotes of 104 shares remained almost unchanged. On the NASDAQ stock exchange, 1,450 companies lost their value, 1,325 rose, and 75 remained at the previous closing level.
Microchip Technology Inc stock prices rose 3.78%, increased to a historic high and ended trading at 132.33. Nike Inc’s stock prices also caught up with the historical high, rising 0.65% and ending trading at 132.77.
Shares of the pharmaceutical company Pfizer increased by 1.4%. At the same time, the price of Gilead Sciences Inc. Securities decreased by 0.86% against the background of the who recommendation not to use the drug developed by the company for the treatment of Coronavirus.
Promotions Salesforce.com Inc. and Boeing Co. lost 2.9% and 2.5%, respectively. Stock quotes of the American manufacturer of graphics processors Nvidia Corp. they fell by 2.6%.
McAfee Inc. securities lost 3.35% in price, despite the fact that the company broke even in the third quarter of 2020 and increased revenue. Foot Locker Inc. shares fell 4.69%, although the sportswear retailer’s profit was higher than forecast.
The Cboe Volatility Index, which is based on S&P 500 options trading indicators, fell 1.34% to 22.80.
December gold futures were up 0.52% at $1,871.15– a Troy ounce. The price of WTI oil for January delivery increased by 1.15% to $42.38 per barrel, while Brent oil for January delivery increased by 1.83% to $45.01 per barrel.
As for the closing of the week on the Forex market, the EUR/USD pair fell by 0.11% (to 1.1861) and the USD/JPY quotes increased by 0.10% to 103.82. The USD index futures rose by 0.09% to 92.368.
The material has been provided by InstaForex Company – www.instaforex.com