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17.08.2021 04:38 PM
US stock indicators decline after high-profile historical highs

On Tuesday, US stock market indicators are declining amid expectations of domestic statistics. Up-to-date data will help determine the degree of impact of the coronavirus pandemic on the world's largest economy.

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So, at the time of writing, the DJIA industrial index sank by 0.4% to the level of 35,392 points. The NASDAQ Composite stock index of high-tech companies lost 0.38% and fell to 15,077 points, and the S&P 500 broad market indicator decreased by 0.41% to 4,455 points.

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On Tuesday, market participants are anxiously awaiting the retail report from the United States. Analysts predict a decrease in retail sales in the past month by 0.3%, following a spectacular growth of 0.6% in June.

In addition, investors are looking at the release of data from the US Federal Reserve System on industrial production in July. If you believe the scenarios of experts, the increase in this index in monthly terms was 0.5% after a rise of 0.4% in June.

Another factor of concern for traders was the threat of the Federal Reserve starting to wind down its asset purchase program in the short term. The reason for the fears of stock market participants was an interview with the chairman of the Federal Reserve Bank of Boston, Eric Rosengren. In it, the head of the Federal Reserve Bank said that he hopes to see the necessary increase in employment in the States by the September meeting of the regulator, which will be an impetus for the start of reducing bond purchases.

However, just the day before, the situation on the American stock markets was not so tense, rather the opposite. So, at the auction on Monday, the leading Dow Jones Industrial Average and S&P 500 indices, which mostly sank during the session, not only closed in the black but also marked the next historical highs. The reason for such euphoria of exchange indicators was the return of market participants' interest in the protective sectors.

As a result, the Dow Jones jumped by 0.31% to 35,625 points, the S&P 500 rose by 0.26% to 4,479 points, and the NASDAQ Composite lost 0.2% and closed at 14,793 points.

At the same time, the healthcare indicator increased by 1.1% and became the growth favorite in the S&P 500 index. Utilities and the consumer goods sector, which also belong to protective investments, reported positive dynamics.

This week, investors are waiting for quarterly reports from such American giants as Macy's Inc, Walmart Inc, Home Depot Inc, Nvidia Corp, and Target Corp.

Irina Maksimova,
Analytical expert of InstaForex
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