NEW YORK — The slow and consistent collapse in the stock market prior to the elections of 2016 continued on Friday, after Wall Street posted losses for the ninth day followed, which represents its longest period of low in more than three decades.
investors continue to focus on the presidential election in the united States, to the extent that there is a clear favorite among some operators, which has put the market on the defensive.
The Dow Jones industrial average lost 42.39 points, 0.2%, to 17,888.28. The index Standard & Poor’s 500 fell 3.48 integers, 0.2%, and stood at 2,085.18, while the Nasdaq composite yielded 12.04 units, 0.2%, and closed at 5,046.37.
the last time that The S&P 500 fell for nine days in a row was in December of 1980, almost 36 years. Ronald Reagan was not even president.
however, the losses have been lower during those nine days, comparatively speaking.
During his streak of nine days to the low of 1980, the S&P 500 fell 9.4%, according to Howard Silverblatt of S&P Global Market Intelligence, in comparison with 3.1% in the current period.
investors point to a factor in the decline: Donald Trump
just A few days before the election, Hillary Clinton still leads in national polls, but Trump seems to close the margin considerably, especially in the states without inclination defined.
the investors like certainty, and Clinton is seen as someone able to maintain the status quo. Policies of Trump are less clear, and the uncertainty and the uncomfortable closeness in the polls have unnerved the financial markets.
“Some investors fear that Donald Trump will become president,” said Michael Scanlon, an account manager at Manulife Asset Management.
Other account directors and strategists of the market have expressed similar comments, pointing out that it is possible that the decline to continue on Wall Street if Trump prevails in the elections, at least in the short term. The VIX, a measure of volatility known in Wall Street as an “indicator of fear” because it allows investors to bet on how much it will change the market in the next 30 days, went up 40% this week to its highest level since June, when Britain voted to exit the European Union.
“No one really knows what Trump would do if comes to power, possibly even he knows,” said Joshua Mohony, market analyst at IG. “It’s that uncertainty that creeps the negativity that has dominated the market this week.”
Some encouraging news on the u.s. economy kept the market higher during much of the day, but the gains vanished in the last few hours of operations. The operators did not want to hold positions over the weekend prior to the elections and took refuge in their investments usual: government bonds and gold.
During the month of October were added 161,000 jobs in the united States and there has been a considerable increase in wages for many workers. The monthly report of the Department of Labor published on Friday painted a picture of a tough job market. The pace of hiring has been consistent with an economy decent. The unemployment rate fell to 4.9% from 5%. The average pay per hour was increased by 10 cents per hour until it reaches an average of 25.92 dollars per hour. That is 2.8% higher than a year ago and its biggest increase in a 12-month period in seven years.
The crude u.s. benchmark lost 59 cents to 44.07 dollars per barrel in New York. Brent crude, the international benchmark,, fell 77 cents to reach 45.58 usd per barrel in London.
The price of u.s. government bonds rose. The performance of the note of the 10-year Treasury fell to 1.78% as compared to 1.81% from the day prior.
The gold rose 1.20 dollars to 1,304.50 dollars per ounce. Silver lost 5 cents to 18.37 dollars an ounce and copper gained 2 cents, and closed at 2.27 dollars per pound.
No comments:
Post a Comment