Wall Street bleeds out in risk-off environment, DJIA eyes 200-DMA


  • DJIA, lost a hefty 391 points, or 1.5%, to 25,896.44
  • The S&P 500 index dropped 35.96 points, or 1.2%.
  • The Nasdaq Composite Index fell 95.73 points to 7,863.41, down 1.2%.

Due to the continued angst over global trade and unrest in Hong Kong, global stocks were giving back territories. For US benchmarks, the Dow Jones Industrial Average, DJIA, lost a hefty 391 points, or 1.5%, to 25,896.44. At the lowest point of the day, the blue-chip gauge was sinking by as many as 462.5 points to an intraday low at 25,824.94. Meanwhile, the S&P 500 index dropped 35.96 points, or 1.2%, to 2,882.70. Eleven of its sectors were closing in the red. The Nasdaq Composite Index fell 95.73 points to 7,863.41, down 1.2%.

Safe havens tell a story

Analysts at ANZ Bank explained that the US-China tensions, Hong Kong tensions, Brexit brinkmanship are all leading the risk-off play out there:

"Gold has risen from under USD1300 at the end of May to over USD1500 today. US 10-year Treasury yields have fallen nearly 60bp in the same period. The JPY/USD is up 4%. Bitcoin, the alternative safe haven for the brave – or those with limited options – is up 35%. The S&P 500 is still up 4.5% since late May despite a wobbly month. While the majority of punters are still on the dance floor or at least hovering on the edge of it nervously clutching their drink, a few are opting to grab their coat and head home."

DJIA levels

The daily doji candle on the charts is playing out. The DJIA index found support on the 200-DMA last Wednesday and bears are back on the trajectory towards another test of the level, currently coming in at 25575. On the upside, the 20-day and 50-day moving average are a target at 26600s. 

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Ends five-day losing streak, but bias remains bearish

EUR/USD gained 0.19% on Wednesday, snapping a five-day losing streak, however, the outlook remains bearish as the pair is trading well below the former support-turned-resistance of 1.1162 (Aug. 12 low).

EUR/USD News

GBP/USD: Teasing inverse head-and-shoulders breakout

GBP/USD is flirting with the inverse head-and-shoulders neckline resistance of 1.2165 at press time. An inverse head-and-shoulders is a bullish reversal pattern and its success rate is high when it appears after a notable sell-off.

GBP/USD News

USD/JPY: Bulls regain 106.50 amid higher S&P futures, Treasury yields

Following a temporary reversal seen on Tuesday, the USD/JPY pair resumes the bullish momentum in Wednesday's Asian trading and regains the 106.50 level, tracking the gains in the US Treasury yields and S&P 500 futures. 

USD/JPY News

Gold: Bulls cheer pullback from 10-day EMA

Following its successful bounce off 10-day exponential moving average (EMA), Gold takes the bids to $1507 during the early Asian session on Wednesday. The yellow metal now heads to Friday’s high around $1528 ahead of questioning the monthly top surrounding $1535.

Gold News

FOMC Minutes July 30-31 Meeting Preview: The Fed vs the markets

The Fed policy that switched to neutral in Jan completed the circle last month with first decrease in the base rate in more than a decade from a 2.50% upper target to 2.25%. Markets expect a second cut at the September 18th FOMC.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •