Wall Street closed a volatile day in the red
Wall Street closed this Thursday in red. The Dow Jones, its main indicator, fell 0.07% despite a wave of data that reflects the economic recovery in the US.
At the close of the NYSE session, the Dow Jones decreased by 23.34 points, to 34,577.04. Meanwhile, the selective S&P 500 yielded 0.36% or 15.27 points, to 4,192.85.
The Nasdaq Composite Index, listing the leading technology companies, fell by 1.03% or 141.82 points, to 13,614.51.
By sectors, the losses were led by non-essential goods companies, which lost 1.22%, and technology companies with a plunge of 0.51%). The highest gains were for public services companies.
Uncertainty about the Fed’s monetary policy worries investors
The New York stock market has received good economic data in the United States. However, it reinforced the uncertainty about the next steps of the Federal Reserve in terms of monetary policy.
The number of applications for unemployment benefits dropped last week for the first time from 400,000 since the pandemic began. Meanwhile, the private sector added 978,000 contracts in May.
The market already has the expectations set in the May employment report to be released tomorrow by the authorities, and it will foreseeably reflect an improvement.
Meanwhile, the Fed has announced plans to sell corporate bonds and index funds it acquired last year. Many investors have interpreted it as a sign of change, despite its reduced value.
Among the 30 listed on the Dow Jones, the decline of Intel, Boeing, Salesforce, and Apple stood out.
On the positive side, Dow Inc and MSD were the ones that rose the most.
The AMC cinema chain, which yesterday doubled its value on the stock market, dropped by almost 18% today. It happened after announcing a sale of shares with which it has raised nearly 590 million dollars.
There was significant volatility in other shares associated with AMC and linked to “memes” and social networks, such as GameStop, Blackberry, or Sundial Growers.
AMC falls 40% after a volatile day on Wall Street
After 11.00 on the New York Stock Exchange, AMC had been paralyzed by high volatility and was down by 38.62%, standing at $38.40.
The company sent wrong messages to investors
Before opening the stock market, AMC announced a sale of 11.5 million shares to take advantage of its strong appreciation. However, it sent an unusual message of caution to investors that betting on its securities could generate losses.
The firm stated that its current prices reflect dynamics not related to its background business or macroeconomic or sector fundamentals. AMC warned investors against investing in its class A shares unless they are prepared to risk losing all or a substantial portion of their investment.
AMC has been going strong for several days related to other sales of shares and a portal for retail investors in which it offers promotions. However, volatility among a group of values associated with memes also increased.
The action of the largest US cinema chain has been among the most thriving in the US market due, in large part, to the GameStop phenomenon last January.
AMC is one of the favorite values of Reddit forums such as Wall Street Bets, along with others such as Blackberry or Sundial Growers. This Thursday, they also registered notable movements due to the contagion effect.
Blackberry started the day with a 26% advance but lost 2%. Meanwhile, Sundial Growers remained with a 21% progress. GameStop dropped by 10%.
The COVID-19 pandemic increased the popularity of commission-free trading applications in the US last year.
In addition, a poll released yesterday by Wells Fargo revealed that the GameStop stock market phenomenon had triggered interest on Wall Street even among American teenagers. They use social media to some extent to learn about finances.
The Seoul Stock Exchange falls 0.23% amid doubts about the US
The Seoul Stock Exchange today broke its streak of five consecutive days of gains. The Kospi, its main indicator, decreased by 0.23% due to the withdrawal of profits among investors and inflation concerns in the United States.
The Kospi ended with a drop of 7.35 points to 3,240.08 integers. At the same time, the Kosdaq technology index lost 2.61 points, or 0.26%, to 987.58 integers.
The Seoul stock market reached the end of the week without momentum.
The reason was the collection of the profits harvested and the concern about a rise in inflation in the United States. According to local analysts, it could jeopardize the economic recovery after the impact of the COVID pandemic.
The benchmark in Seoul, tech giant Samsung Electronics, lost 0.72%. Meanwhile, the country’s second-largest semiconductor producer, SK Hynix, lost 0.39%.
Also noteworthy are the decreases of the internet operator Naver, with a 1.38%. LG Chem, the national leader of the chemical sector, lost 0.37%.
On the other side of the coin, the pharmaceutical company Samsung Biologics advanced by 1.94%. Hyundai Motor, the largest South Korean car manufacturer, rose by 1.26%.
The trading volume amounted to 15.8 trillion won (14.2 billion dollars).
The Tokyo Stock Exchange closed mixed
The Tokyo Stock Exchange recorded a 0.40% decline in the Nikkei, its main indicator. The losses followed the caution registered on Wall Street due to unemployment data in the US and the sale of technological assets.
The Nikkei closed the session this Friday with a decrease of 116.59 points, falling to 28,941.52. Technological assets dropped in the session due to concerns about the US’s economic rebound and unemployment data.
The Topix index, including the securities with the highest capitalization, advanced slightly by 0.49 points or 0.03% to 1,959.19 points at the close.
Among the most traded values of the day in Tokyo, the electronic components manufacturer Lasertec gained 0.91%. Japanese car leader Toyota gained 1.62%, and electronics maker Sony added 0.59%.
On the other hand, the technology giant Softbank lost 1.29%.
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