Wall Street retreats after global-scale slide; gold storms past $1,900 an ounce

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Wall Street retreats after global-scale slide; gold storms past $1,900 an ounce

On Friday, a gauge of global stock indices had wrapped up the day broadly lower following reveal of a media headline that Beijing had issued a proclamation to shut down the US consulate in the western city of Chengdu as an act of retaliation, while the Wall St.

had wrapped up the day sharply lower over renewed escalation in Sino-US spat alongside a steady spike in the pandemic cases. Besides, as all three major US stock indices had pared some of their gains from a concrete July rally on Friday, the benchmark S&P 500 accountable for roughly 45 per cent of all trading activities in the Wall St., had registered its first weekly percentage loss in four weeks.

Wall St. pulls back as traders turn cautious

In point of fact, on the day’s sharp downcast in the Wall St. was largely prodded by headlines revealing worsening relations between Beijing and Washington, while the pandemic resurgence remains as a dominant force to wipe out investors’ optimism as well.

Apart from that, investors’ cautions had also stepped up following reveal of a recent uptick in layoffs across the United States, as major US states had been forcing businesses to shut down defying Trump Administration’s strident call for a re-opening, while a growing debate in the Capital Hill over another set of trillion-dollar pandemic stimulus package that is expected to include a $1,200 in monetary aid per American nationals having had up to $75,000 in annual earnings, had been sending shockwaves into the US money markets.

Citing statistics, on the day’s Wall St. round off, the benchmark Standard & Poor 500 soured 0.62 per cent to 3,215.63 and Dow dropped 0.68 per cent to 26,469.89, while leading the losses, the tech-heavy Nasdaq was nudged 0.94 per cent lower to round off the day at 10,363.18.

Meanwhile, referring to the Fed’s pandemic stimulus package, a managing director at UBS Private Wealth Management, Teresa Jacobsen, said on Friday’s Wall St. closing bell, “The Fed is the big story behind this market, that and the liquidity it’s provided.

It gives a great deal of support for upside in the market. But there are momentary blips when we pause and give a little back. ” On top of that, following a sharp fallback of the American currency alongside a bleaker equity market outlook in a near- to -intermediate term, the precious safe-haven gold futures’ prices scheduled to be expired by August had stormed past the $1,900 per ounce level.