Solid News

US Stock Market Started to Decline

8/24/2022 1:47 PM

The US stock market returned to negative dynamics after the end of the active phase of the publication of financial statements of companies. At the moment, the Dow Jones index is correcting in a local downtrend, trading at 32877.0.

In the corporate segment, Zoom Video Communications, a company offering cloud-based video conferencing solutions, remains one of the leaders in the decline, whose shares lost more than 16% on the back of a weak quarterly report and subsequent management comments. In particular, a drop in revenues was predicted by the end of the year due to the lifting of quarantine restrictions and the return of users to offices and, as a result, a decrease in demand for online communication services.

Another event that could have an impact on the US stock market is the annual economic symposium at Jackson Hole, which kicks off tomorrow. Traders hope to get more clarification about the implementation of the plan to raise interest rates and further actions of the financial authorities to reduce the rapid pace of inflation from US Federal Reserve Chairman Jerome Powell.

In turn, an upward correction in the bond market puts pressure on the Dow Jones index. The popular 10-year US Treasuries yield at 3.030% after 2.800% last week and the conservative 20-year bonds are trading at 3.480% after 2.996% last Friday.

The growth leaders in the index are Chevron Corp. (+3.24%), Caterpillar Inc. (+2.84%), Dow Inc. (+2.22%).

Among the leaders of the decline are Procter & Gamble Co. (-1.93%), Home Depot Inc. (-1.70%), UnitedHealth Inc. (-1.61%).

The index quotes have left the boundaries of a wide downward channel, having overcome the resistance line, but at the moment they are approaching the broken level again. Technical indicators, which were steadily pointing to growth, began to actively reverse: the fluctuation range of the Alligator indicator EMAs is actively narrowing, and the histogram of the AO oscillator is forming new descending bars, being in the buy zone.

Support levels: 32561.0, 31245.0. | Resistance levels: 33296.0, 34300.0.

Find Us
First Floor, First St Vincent Bank LTD Building James Street Kingstown St Vincent and the Grenadines
Call Us
+1 415 367 3742

Solid ECN Securities is an international brand formed and authorized in Saint Vincent and the Grenadines with the registration number 1390 LLC 2021 committed to offering the best possible trading experience. Disclosure: Please note that foreign exchange and other leveraged trading involve a significant risk of loss. It is not fit for all investors and you should make sure you realize the risks involved, seeking independent advice if necessary.
Solid ECN Securities and it affiliates don't accept applications from Indonesia, Egypt, Australia, Bonaire, CuraƧao, East Timor, Liberia, Saipan, Russia, Sint Eustatius, Tahiti, Turkey, Guinea-Bissau, South Sudan and other restricted countries.
Copyright All Right Reserved 2023