The three major American indices ended the trading session yesterday, Tuesday, September 28, with strong declines, as the Dow Jones index lost more than 500 points, while the Nasdaq index specialized in the technology sector recorded its worst daily performance since last March, affected by the rise in US bond yields.
The yield on the ten-year US Treasury bond traded at its highest level in more than three months, as it tested 1.56 levels during the American session, up more than 4%, recording its highest level since mid-June, coinciding with rising expectations that the US Federal Reserve would begin to shift. For a more stringent policy and the start of reducing bond purchases, followed by an increase in interest rates, and thus the Nasdaq index was affected the most due to its sensitivity to high interest rates.
The testimony of Jerome Powell, head of the American Fed rally before Congress, did not differ from the press conference of the bank’s meeting last week, where Powell confirmed that the bank will reduce its purchases of bonds and end them by the middle of next year in light of the current economic developments.
On the other hand, US Treasury Secretary Janet Yellen warned of the consequences of the US Congress not responding to raising the debt ceiling quickly, as the United States of America will face a major crisis if the debt ceiling is not raised by October 1 and will default on payment.
Republicans in the Senate had blocked legislation on raising the US government debt ceiling early Monday, which would have funded the government until December 3 and avoided a new closure with 48 votes, while 50 members opposed it, while the legislation needs 60 members to pass, as the opportunity ends at midnight tomorrow, Thursday, the 30th September.
In terms of the movement of American stocks, technology companies were among the most affected, as Apple’s share lost about 2.38% and closed at levels of $141.91, while Microsoft lost about 3.62% and closed at levels of $283.52 and Alphabet or Google declined by about 3.72% at closing at levels of 2.716, and the share of Amazon is about $3,315, down by 2.64%.
The Dow Jones Industrial Average closed the session yesterday, Tuesday, down by about (569) points, at the close at 34.299 levels, with a loss of about 1.63%, and it is now trading in the futures for today’s session, Wednesday, at 34.338 levels, down by about 163 points.
While the S&P 500 index recorded declines at the close at 4.352 levels, down by about (90 points), or 2.04%, and is now trading in futures at 4.364 levels, up by about 20 points.
While the Nasdaq index recorded losses of (423 points) to close the session at 14.546 points, recording losses of about 2.83%, and it is now trading at 14,831 levels, up by about 66 points.
06/11/2024
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