US stocks slipped on the night of January 22, with both the S&P 500 and the Nasdaq Composite leaving the peaks just set in the previous session.
|The Dow Jones industrial average on January 22 lost 200 points, or 0.6%. Photo: AFP|
The “red floor” movement of US stocks occurred because investors recognized that the fiscal stimulus plan of the Covid-19 period of the new US President Joe Biden was ambitious.
The Dow Jones industrial average lost 200 points, or 0.6%, while the S&P 500 index slid 0.5%. Meanwhile, the tech-oriented Nasdaq Composite index fell 0.4%. Previously, the Nasdaq Composite and S&P 500 both peaked at the close of the night session on January 21, and the Dow Jones also set a record earlier this week.
According to CNBC, IBM shares have “evaporated” more than 9% after the group announced the fourth quarter of 2020 sales fell 6% compared to the same period last year, sliding deeper than the forecast of analysts. . This is the fourth consecutive quarter that IBM suffered from declining sales.
Meanwhile, Intel shares also lost 4% after rising 6% in the previous session – when the chip maker announced profit was higher than expected.
More and more Republican members are skeptical about the need for an additional bill on stimulus packages, especially a stimulus package of 1,900 billion USD as proposed by President Biden.
Democratic Sen. Joe Manchin has criticized the size of the recently proposed support checks. The disagreement from either party is putting great pressure on Mr. Biden.
Tom Essaye, founder of financial research firm Sevens Report, said: “Washington’s political situation is starting to make an impact on markets and it becomes increasingly unclear as the stimulus targets fill up. Democrats’ ambitions become law.
The cyclical stocks – those that have benefited the most from the Biden administration’s additional stimulus measures, lagged behind the market this week. Stocks in the energy and finance sectors have dropped more than 1% since the beginning of the week, while stocks of raw materials also have a downward trend.
Meanwhile, stocks in tech companies – for the most part that don’t need support to drive growth – led the group to gain. Hope for a bumper season of the biggest media and technology stocks in the US has helped the group of large-cap stocks tend to increase this week.
Shares of Apple and Facebook are both up 7.7% and 8.6% this week before these two corporations announced Quarterly results, while Microsoft shares rose 5.8%.
The S&P 500 index has risen 2% year-to-date and has risen 16% in the past 12 months, leading some investors to believe that the market is likely to overcome problems thanks to the Covid-resistant vaccine distribution program- 19 will be widely deployed throughout the United States and the ability to remain open to the economy will remain.
Since the beginning of the week, the S&P 500 has risen 2.3%, while the Dow Jones and Nasdaq Composite have risen 1.2% and 4% respectively.
The US Senate is about to approve former US Federal Reserve (Fed) Chairman Janet Yellen as Treasury Secretary under President Joe Biden. If approved, Janet Yellen will be the first female finance minister of the United States.