Wall Street trims its gain on unemployment data and rising corona virus cases

Let’s explore the reason for paring gains on Wall Street.

  • Higher than expected unemployment data disappointed Wall Street.
  • Surging corona virus cases with California reported its largest ever cases dampened the investors sentiments.
  • China decision to close parts of Beijing highlights rising corona virus cases.
  • Stocks in Wall street ends in mix territory in which Dow lost 39.31 points, S&P closed positively with 1.85 points gain and Nasdaq closed with gain of 32.52 points.
  • China returned the ten missing Army personnel to India after there was meeting among Generals of both side.
  • Asian markets are trading with mix biased this morning.
  • SGX Nifty is in negative note this morning.

wall street

Why Wall Street Stocks falls in last session of trading?

  • Around 1.5 million Americans have filled for unemployment claim disappointed the Street. There was expectation that total unemployment claim would be near 1.3 million. Showing a sign of struggling U.S. economy from this pandemic.
  • Several states in United States are fighting with rising corona virus cases. Arizona experienced highest number of cases in last few days followed by Texas where there is a sudden spike in hospitalization rate. California also reported the highest ever cases. These are not good for the economy at large.
  • 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 paring of gains in U.S. stocks.
  • China decision to close parts of Beijing highlights rising corona virus cases. This shows all is not well in China and more negative news is expected.

US Markets

  • Dow Jones Industrial Average decreased by 39.51 points, or 0.15%, close at 26,080.10.
  • The S&P 500 gained by 1.85 points, or 0.059%, ends at 3,115.34.
  • Nasdaq Composite Index surged by 32.52 points, or 0.33%, close at 9,943.05.

Asian Markets This Morning

IndicesCurrent ValuePrev. Close% Change
Nikkei 22522,418.7922355.46 0.28%
Straits Times2,651.232665.66-0.54%
Hang Seng  24,494.8424464.94 0.12%
Taiwan Weighted11,559.1611548.33 0.09%
Shanghai Composite2,938.792939.32-0.02%
SGX Nifty10,052.5010033.50 0.19%
Time of data collection: 7:18 A.M

Nifty Outlook

  • SGX Nifty is suggesting a positive start with rise of 0.19% at present time (7.18 a.m.). Indian Markets will start at around 10050 level. Asian markets are trading mix this morning.
  • Today Nifty has high probability of trading with positive bias. We recommend you to trade in Nifty future and expect target of 10120 to 10150 upside and stop loss 9950.

Read: Are you confused with the selection of Nifty 50 stocks for your portfolio? A ready guide for you.

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