Wall Street Close: S&P 500 snapped a three-day winning streak, falling 0.46%


  • The Dow Jones Industrial Average DJI rose 38.17 points, or 0.14%.
  • The S&P 500 SPX lost 15.62 points, or 0.46%. 
  • The NasdaqComposite IXIC dropped 139.86 points, or 1.25%. 

It was looking all rosy on Wall Street until the Federal Reserve Chair, Jerome Powell commented in his Q&A session that "it will take a while to get back to levels of activity and employment that prevailed before the pandemic." 

Consequently, the benchmarks buckle under the pessimism and the bellwether S&P 500 snapped a three-day winning streak, falling 0.46% by the closing bell. 

Overall, the Dow Jones Industrial Average rose 38.17 points or 0.14%, to 28,033.77. Economically sensitive industrial and financial stocks helped keep the Dow afloat. The blue-chip index ended the session up 0.13%.   

The S&P 500 lost 15.62 points, or 0.46%, to 3,385.58 and the NasdaqComposite fell 139.86 points, or 1.25%, to 11,050.47.   

The tech-heavy Nasdaq suffered the biggest loss among the major indexes, dipping1.25%, with market leaders Apple Inc AAPL, Amazon.com AMZN, Microsoft Corp MSFT and Facebook Inc FB weighing the most.

Fed delivers a balanced overview

As expected, the central bank left the key Fed funds target rate near zero and signalled that it expects to keep it there until 2023. 

The statement repeated the Fed's vow to use "its full range of tools" to support economic recovery, which should buoy the stock market for the forcible future so long as the economic recovery remains on track and vaccine hopes linger on. 

However, Powell suggested that the fed's action may to be enough and he that direct fiscal support may be needed.

Disappointing retail sales data released before the bell, which suggested the economic rebound from the pandemic recession could be losing momentum was a hindrance as well.  

August US Retail Sales disappointed, rising 0.6% m/m (1% expected), with a material downward revision to the previous month.

The control group (which feeds into GDP) fell 0.1% MoM, adding to concerns that the economy may be losing momentum into Q4.

It suggests consumption has been affected by the end of the supplementary $600 weekly unemployment support and the rise in COVID-19 cases.

On the whole, the data argue for additional fiscal support and significant risks to the recovery as H2 advances, especially given that employment has been slowing.

analysts at ANZ bank explained. 

SP 500 levels

 

Overview
Today last price 3410.75
Today Daily Change -0.25
Today Daily Change % -0.01
Today daily open 3411
 
Trends
Daily SMA20 3433.08
Daily SMA50 3337.69
Daily SMA100 3181.46
Daily SMA200 3101.83
 
Levels
Previous Daily High 3419.5
Previous Daily Low 3389
Previous Weekly High 3444.25
Previous Weekly Low 3310.25
Previous Monthly High 3522.75
Previous Monthly Low 3264.25
Daily Fibonacci 38.2% 3407.85
Daily Fibonacci 61.8% 3400.65
Daily Pivot Point S1 3393.5
Daily Pivot Point S2 3376
Daily Pivot Point S3 3363
Daily Pivot Point R1 3424
Daily Pivot Point R2 3437
Daily Pivot Point R3 3454.5

 

 

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