New York Stock Worries About Technology Companies Regulation
The market looked at US and China trade negotiations, tariffs on Mexico, and the impact of US authorities on major companies such as Google.
On the New York Stock Exchange (NYSE) on Wednesday, the Dow Jones industrial average fell 4.74 points (0.02 percent) to close at 24,819.78.
The Standard & Poor’s 500 index dropped 7.61 points (0.28 percent) to 2,744.45. The tech-heavy Nasdaq composite index dropped 120.13 points (1.61 percent) to close at 7,333.02. The Nasdaq fell more than 10 percent from its peak in late April and entered the control panel.
Last week, US President Donald Trump declared that he would impose tariffs on all products from Mexico if the problem of illegal immigrants was not resolved.
Conflicts with China are also continuing. However, on the day of the meeting, expectations for the negotiations were raised, and the anxiety was somewhat eased.
Mexico is on the brink of emphasizing the importance of dialogue with the United States.
Mexico, on the other hand, has pledged that the United States can not accept the so-called “safe third country” approach to illegal immigration. It is also reported that the US is considering measures to counter tariffs if it imposes tariff hikes.
President Trump continued to press on Mexico that he should show it in action, not “discussion.”
Conflicts with China are also becoming more widespread.
China has released a white paper on trade negotiations with the United States and criticized the US for breaking the negotiations.
In the White Paper on Trade Negotiations, China urged that “only cooperation between the two countries is the only solution and the right choice” and that “the differences and conflicts between the two countries should be resolved through dialogue and negotiation” It also raised expectations.
Concerns and negotiations have been crossing over tariff issues, and US regulatory concerns over major technology companies such as Google have also hit the market on this day.
The US Department of Justice is investigating Google and Apple for alleged violations of antitrust laws.
The Federal Trade Commission (FTC) is also investigating whether Amazon and Facebook are violating antitrust laws. The two US regulators have all begun to investigate four…
Technological stocks have been under strong downward pressure due to concerns about tightening regulations on core technology companies.
The sluggishness of key indexes such as the May manufacturing PMI of May released on the day raised concerns about the economic downturn.
Meanwhile, Federal Reserve Chairman James Bullard of the Federal Reserve (Yeon) provided support for the stock market by raising expectations for interest rate cuts, saying that the Fed could soon be able to cut the Fed’s interest rate by a trade war.
On the day, Facebook shares fell 7.5 percent, Google’s parent company Alphabet, 6.1 percent, and Amazon’s 4.6 percent. Apple shares fell 1.0%. Faced with the threat of China’s investigation, Fedex shares fell 1.2%.
By industry, communications fell 2.79%, technology shares fell 1.76%. Energy rebounded by 1.37%.
Economic indicators released on the day were sluggish.
The Wall Street Journal’s estimate was less than 52.3.
In particular, the new order index rose to 52.7 from 51.7, and it was positively evaluated that it did not deteriorate as badly as the market worried.
The May manufacturing and purchasing managers index (PMI) final value (seasonally adjusted) for May was 50.5, down from 52.6 last month. Which was lower than the previously announced reserve level of 50.6.
It was the lowest in 116 months since September 2009, when the global financial crisis occurred.
The Commerce Department reported that April’s construction spending totaled $ 1.29 trillion (seasonally adjusted) at the same rate as the delivery. The market was sluggish than expected by 0.4%.
However, construction spending in March was revised up by 0.1% from 0.9% originally.
New York stock market analysts warned that trade war unrest could persist and put pressure on the market.
According to the Chicago Mercantile Exchange (CME) ‘s Fed Watch, the interest rate futures market for the interest rate reflects a 40.8% chance of a 25bp rate cut in June.
In the Chicago Option Exchange (CBOE), the volatility index (VIX) was 18.86, up 0.80% from all trading days.
New York Stock Worries About Technology Companies Regulation - /10
The market looked at US and China trade negotiations, tariffs on Mexico, and the impact of US authorities on major companies such as Google