Let’s explore the reason for fall of Wall Street Stocks.
- Surge in corona virus cases in at least 9 states of U.S. have put investors cautious.
- China closed most part of Beijing after 137 corona virus new cases registered
- Investors ignored positive economical development of better than expected housing construction activities are seen in U.S. that shows sign of revival.
- Tuesday data revealed that U.S. Retail sales surged 17.7% in May from previous month. Giving an indication that economical activities are improving in the economy.
- Trump administration is planning to announce an infrastructure package of $ 1 trillion to push the economy.
- Fed announced to purchase corporate bonds to support the economical activities in the country.
- All U.S. indices closed with mix performance.
- India- China relationship takes a back seat after fresh clashes in Army of two sides at Galwan Valley. This resulted in casualties on both side.
- Asian markets are trading with negative biased this morning.
- SGX Nifty is in negative note this morning.
Why Wall Street Stocks falls in last session of trading?
- A sudden surged in corona virus cases in U.S. puts investors cautious. The fear of second wave of infection is getting louder. This resulted in fall of U.S. stocks in late trading session.
- China has again put travel restriction to Beijing after registering new corona virus cases. There is a sudden rise in cases and resulting in 145 people got affected with the corona virus infection.
- Investors ignored a positive economical development in U.S. related to 21% surge in housing construction activities compared to last year. This shows a sign of revival after hitting so bad from pandemic.
- Even data revealed on Tuesday shows a revival in Retail sales that surged to 17.7% from prior month. Economist expected a revival of 8%.
- The positive sentiments increased further on news that Trump administration is planning to come out with a package of $ 1 trillion to support the economical growth.
- Some U.S. states like Texas, California, Florida and other states have seen sudden spike of corona virus cases. This can be seen by sudden spike in hospitalization rates.
- Dow Jones Industrial Average decreased by 170.37 points, or 0.65%, close at 26,119.61.
- The S&P 500 fallen by 11.25 points, or 0.36%, ends at 3,133.49.
- Nasdaq Composite Index surged by 14.66 points, or 0.15%, close at 9,910.53.
Asian Markets This Morning
|Indices||Current Value||Prev. Close||% Change|
- SGX Nifty is suggesting a negative start with fall of 0.27% at present time (7.00 a.m.). Indian Markets will start at around 9850 level. Asian markets are trading weak this morning and pushing pressure on SGX Nifty.
- Today traders should be cautious on the rise of India-China tensions on borders after a recent clash between Armies of both side and resulting in heavy casualties. This can put pressure on the markets today. We are more bearish for the day. Nifty has high probability to trade with negative biasness.
Read: Are you confused with the selection of Nifty 50 stocks for your portfolio? A ready guide for you.