On Thursday, a raft of Wall St. stocks had rounded off the day sharply lower despite a better-than-expected retail sales in June, as more than 32 million Americans who have still been withdrawing pandemic unemployment pay-checks with an additional $600 per week had spurred up concerns related to the economic toll of the recent spike in pandemic cases across the country.
In point of fact, apart from a higher level of unemployment rate alongside a rapid rise in the pandemic cases, an elevated level of trade tension between Washington and Beijing appeared to be taking a heavy toll on investors’ mind, while the second round of forced business closures in several US states from South and West including California, Texas and Florida, had rekindled worries of further business damage, eventually slowing down the Wall St.
rally which appeared to have sailed over the monumental stimulus packages thus far.
Data shows challenge in upward spiral, say analysts
Although an unprecedented fall in tech stocks on Thursday’s market following a second leg of shutdown in the US state of California, a home to a number of US tech conglomerates, had largely weighed on Standard & Poor 500, while Apple Inc.
fell by 1.2 per cent and Microsoft was muzzled 2 per cent alongside Tesla stocks clocked a tottering of 3 per cent, the benchmark S&P 500 has only been 5 per cent below its February high. Citing statistics, on Thursday’s market closure, the Dow dwindled 0.5 per cent to 26,734.71 and the S&P 500 shed 0.34 per cent to 3,215.57, while the tech-heavy Nasdaq was nudged 0.73 per cent lower to 10,473.83.
Meanwhile, referring to the US retail sales data, which had reported a gain in June for the second straight month in a row, but would likely to witness a downturn this month since an additional $600 in weekly unemployment pay-check for 32 million Americans would last until end-July amid a second wave of lay-offs, suggesting a highly likely lag in consumer spending, an investment strategist at Baird in Milwaukee said on Thursday’s Wall St.
closing bell, “The economic data shows there is still a challenge going forward. Congress better get its act together and pass another fiscal stimulus”.