Wall Street Close: DJI30 drops from fresh record high, Nasdaq down 2.55%


  • US equities fail to extend Friday’s upbeat performance to Monday.
  • Need for more clues to defy reflation fears joined downbeat technology shares to back the bears.
  • Citi downgrades Facebook, Alphabet amid doubts over online advertising growth, challenging valuation multiples.
  • US FDA approves Pfizer-BioNTech vaccine for under 12-15 age group.

Wall Street benchmarks dropped, after an initially good start to the week, as optimism over the Fed’s easy money policies fizzled on Monday. While fears that slowing inflation may weigh on the technology shares that roared of late was the main catalyst, Citibank’s downgrade to Facebook and Alphabet also played their role to recall bears. Furthermore, cautious sentiment ahead of Wednesday’s key US inflation figures, to confirm no more tapering and rate-hike fears, also weigh on the market sentiment.

Against this backdrop, Dow Jones Industrial Average (DJI30) declines 0.10% or 34.94 points after refreshing the record top with 35,091.56 earlier in the day. S&P 500 is the second in the losing line with 1.04%, or 44.17 points, the downside to 4,188.43. However, the winner, actually the biggest loser, is Nasdaq that slumps 2.55% or 350.38 points to 13,401.86.

Amid a lack of major data/events, US markets carried Friday’s upbeat performance to start Monday’s trading. However, doubts over whether a one-time drop in the US Nonfarm Payrolls (NFP) is enough to save the Fed from dailing back easy-money policies resurfaced afterward and weighed on the stocks. Also, chatters that weaker inflation will be a challenge for the technology shares add to the market pessimism then after.

The sentiment helped Dallas Fed President Robert Kaplan to reiterate his push for tapering as the US government braces for further stimulus.

It’s worth mentioning that Citibank becomes the first among Bloomberg’s 43 analysts to downgrade Alphabet from Buy to Hold. The US investment banker also does the same for Facebook citing challenges to their main source of income, namely advertising.

Elsewhere, the coronavirus (COVID-19) woes remain present in Asia but vaccine updates from the European Union (EU), Australia and the US, mainly concerning Pfizer-BioNTech shots, were upbeat.

Looking forward, Wednesday’s US Consumer Price Index (CPI) for April becomes the key reading but chatters from the Fed policymakers may direct markets before that.

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD clings to 1.18 as markets digest US data

EUR/USD is battling the 1.18 level after US Retail Sales beat estimates but came on top of a downward revision. Consumer sentiment missed expectations but inflation expectations advanced. Covid headlines are also eyed.

EUR/USD News

GBP/USD pressured around 1.38 after mixed US data

GBP/USD is trading around 1.38 down on the day after US Retail Sales beat estimates but consumer sentiment missed expectations. Hawkish BOE comments support sterling ahead of Britain's reopening on Monday.

GBP/USD News

XAU/USD flirts with daily lows, just above $1,820 level

Gold remained on the defensive through the first half of the European session and was last seen hovering near the lower end of its daily trading range, just above the $1,820 level.

Gold News

Bitcoin miners evolve and adapt while bulls gear up for $38,000

Bitcoin price has been tightening as it consolidates in a slim range. The recent price action seems to have developed into a bullish pattern that hints at a potential impulsive move if BTC manages to slice through a critical resistance level. 

Read more

GME Stock News: Gamestop trades lower after Netflix emerges as a new rival

NYSE:GME dipped by 0.48% on Thursday, as the broader markets continued to show volatility. Netflix announces its entry into the videogame market. AMC outpaces the market as the meme stock bucks its recent trend.

Read more

Forex MAJORS

Cryptocurrencies

Signatures