US stocks struggle for direction, Nasdaq underperforms

Major US equity indices struggled for a firm direction and witnessed a mixed opening on Wednesday as investors remained on the sidelines amid lingering US-China trade tensions. 

Today's muted trading action comes after two straight sessions of advance for both the S&P 500 and Nasdaq. Meanwhile, energy stocks gained on the back of a rise in crude oil prices amid worries about supply disruptions caused by Hurricane Florence and provided a minor boost to the blue-chip Dow Jones Industrial Average (DJIA).

On the economic data, the wholesale price of US goods and services fell in August for the first time in 18-month, suggesting that the recent upturn in inflation might have eased and thus, failed to provide any catalyst for bullish traders. 

On the other hand, investors continue to track the recent escalation of trade rhetoric between the US and China. Analysts warned that a full-blown trade war between the world's two largest economies would hurt global economic growth, albeit the US equities might continue to find support from encouraging economic data and upbeat corporate earnings reports.

At the time of writing this report, the DJIA was up nearly 30-points, back closer to the 26K mark, and the broader S&P 500 Index treaded water near yesterday's closing level, around 2,887. Meanwhile, tech-heavy Nasdaq Composite Index fell over 40-points to 7,930 and was being weighed down by weakness in shares of Apple, ahead of the expected release of its latest smartphone model.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

EUR/USD: Bullish breakout faces next challenge at 1.1150

The EUR/USD pair closed the week at around 1.1100, its highest settlement in two months, as poor US data coupled with a relief rally of high-yielding assets ahead of the close. Several European countries will start the week celebrating a holiday.


GBP/USD: Post-Brexit relationship taking centre stage

The GBP/USD pair hit 1.2393 on Friday, a two week high, retreating sharply from the level ahead of Trump’s speech to later recover on relief and settle at 1.2345. Cable is technically neutral, although the bullish potential seems limited.


Cryptocurrencies: $348M in matured derivatives boost the market

Futures and options contracts' expiration brings a wave of volatility to the crypto market. Ethereum takes advantage and attacks resistances in the market dominance chart, Bitcoin goes back. Ripple disappoints despite regaining the third place in market capitalization.

Read more

Canada's economy falls by 8.2% annualized in Q1, better than expected, USD/CAD shakes

The Canadian economy squeezed by an annualized rate of 8.2% in the first quarter of 2020, better than -10% expected. Quarterly, Gross Domestic Product (GDP) squeezed by 2.1%. Most of the downfall occurred in March, with a drop of 7.2%, better than 8.5% projected. 

Read more

WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

Oil News