Stock Market This Week (US): Why did US stock market fall this week?
Stock Market This Week (US)
It was another challenging week for investors and traders as the market ended in red on four days out of five trading days. All the major indices ended lower, making it their third negative week in a row. The Dow fell 3%, S&P lost roughly 3.3%, and NASDAQ performed even worse as it fell 4.2%.
US stock market this week: Stocks movement this week
The US stocks fell on Monday as investors fought to regain their footing from last week's sell-off amid concerns over tighter US monetary policy and rising rates. The worst performing sector for the day was tech.
The equity market fell for the third consecutive day on Tuesday as the Fed, and other global central bankers continued to signal they will raise interest rates. All the major indices fell more than a percent.
US stocks ended the volatile trading day in a negative on Wednesday as fears of combative Fed policy to rein inflation continued to weigh on sentiment. Crude oil plummeted nearly 3% and came below $90 per barrel, while crude oil futures slid 2.9% to $96.53 per barrel.
The US stocks started the new month on a positive note on Thursday as investors looked forward to the job report on Friday. Nvidia shares fell the most on NASDAQ, falling nearly 7.7% after the chipmaker said the US government is restricting some sales in China.
All major US indices started Friday with a rally but ended the day in a negative, falling more than a percent. The Nasdaq Composite declined 1.3% and recorded its first six-day losing streak since 2019. A solid August jobs report failed to ease fears that the Fed would keep hiking interest rates to fight inflation.
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US stock market this week: Major events
August job report: Hiring slowed in August but remained sturdy as employers added 315,000 jobs despite softer consumer spending gains, a sputtering economy, and rising interest rates. The Labor Department said on Friday that the unemployment rate rose from 3.5% to 3.7%. The number of people working and looking for jobs shot up by nearly 800,000 with many of those on the sidelines streaming into a favorable labor market.
Treasury yields increase: The evidence of continued tightness in the labor market helped push US Treasury yields higher, with the two-year Treasury yield reaching levels not seen since late 2007. The two-year US Treasury yield stood at 3.482% after hitting 15-year highs earlier in the week. The yield on 10-year Treasury notes was up 1.7 basis points to 3.282%.
Snap layoff: Snap CEO Evan Spiegel announced that the company will reduce its workforce by 20% as part of a larger restructuring. It translates to around 1,280 Snap employees. They have an over-6,400 workforce. The layoff will save $500 million in cash expenses on an annualized basis relative to Q2'22.
Factory orders: It fell 1.0% month on month in July, well below estimates of a 0.2% rise, with the prior month's 2.0% gain being revised lower to a 1.8% increase. Durable goods orders—preliminarily reported last week were revised negatively to a 0.1% decline for July, and excluding transportation, orders were adjusted downward to a 0.2% gain.
How has the US market performed this week?
Out of the five trading days, the US market ended in red on four days. All the major indices lost more than 3% in the week, with NASDAQ falling the most - 4.2% for the week.
What is the unemployment rate in the US for August?
The labor department said that the unemployment rate rose from 3.5% to 3.7%. Employers added 315,000 jobs despite softer consumer spending gains, a sputtering economy, and rising interest rates.
Does US market open on Saturday and Sunday?
No US markets are closed on weekends i.e. Saturdays and Sundays.