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US markets end deeply in red on Wednesday

24 Sep 2020 Evaluate

The US markets ended deeply in red on Wednesday as market participants struggled to shake off worries about a lack of a coronavirus aid package and rising COVID-19 cases. Concerns about surging coronavirus cases in certain parts of the world have weighed on the markets even as President Donald Trump indicated the US would not follow the UK's lead and implement a second round of lockdowns. The sell-off on markets also came amid renewed weakness among technology stocks, as reflected by the particularly steep drop by the tech-heavy Nasdaq. Big-name tech companies like Netflix, Apple, Amazon and Alphabet all showed significant moves to the downside.

On economic front, Federal Reserve Vice Chairman Richard Clarida said that policy makers won’t contemplate raising interest rates until inflation is clearly back at 2%-and possibly even beyond. Randal Quarles, the Fed’s vice chairman for banking supervision, said he’s optimistic about the outlook but also agreed with Fed Chair Powell that continued support will be required to sustain a robust recovery. A September composite purchasing managers index flash reading from IHS slipped to 54.4 in September from 54.6 in the prior month, signaling a slower pace of growth. The flash services purchasing managers index inched down to 54.6 from 55 in August. The flash manufacturing index rose to 53.5 in September from 53.1 in the prior month, still marking a 20-month high.

Dow Jones Industrial Average dropped 525.05 points or 1.92 percent to 26,763.13, Nasdaq declined 330.65 points or 3.02 percent 10,632.99 and S&P 500 was down by 78.65 points or 2.37 percent to 3,236.92.  

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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