Tue, 03 Aug 2021

U.S. stocks mixed, Dow Jones tumbles 210 points

Lola Evans
18 Jun 2021, 06:15 GMT+10

NEW YORK, New York - The dollar took center-stage on U.S. markets on Thursday rising sharply against a broad range of currencies.

Equity markets were mixed. The Nasdaq shot higher, the Standard and Poor's 500 was flat, while the Dow Jones tumbled.

Investors and traders clearly had divided opinions on which way markets were headed following the Federal Reserve's announcement the previous day that interest rates would head higher in around two years' time.

"The pace of tightening is still uncertain. How large of an inflation overshoot is allowed before liftoff will also be important in gauging the pace of tightening," Moody's Analytics said in a paper published on Thursday. "If the Fed allows a larger overshoot, then the pace of tightening will likely be similar to a traditional tightening cycle, 25 basis points per quarter because inflation should continue to accelerate even after the first rate hike."

"If the Fed doesnt allow too much of an overshoot, then the tightening cycle will be less aggressive. The first hike for the target range for the fed funds rate occurs in early 2023, and the pace of tightening is expected to be similar to historical norms," the Moody's paper said.

At the close on Thursday, the Dow Jones index was down 210.22 points or 0.62 percent at 33,823.45.

The Nasdaq Composite added 121.67 points or 0.87 percent to 14,161.35.

The Standard and Poor's 500 slipped 1.84 points or 0.04 percent to 4,221.86.

On foreign currency markets, almost all currencies buckled under the renewed strength of the U.S. dollar. The Japanese yen was the only currency to take on the greenback, finishing ahead approaching the New York close, last quoted at 110.27.

The euro fell sharply to 1.1901. The British pound tumbled to 1.3023. The Swiss franc was easier at 0.9178.

The commodities bloc fell sharply, with the Canadian dollar falling to 1,2358. The Australian dollar was sold off to 0.7549, while the New Zealand dollar dropped like a stone to 0.6999.

Stock markets in Europe rose with the Paris-based CAC 40 climbing 0.20 percent. In Germany, the Dax appreciated by 0.11 percent.

In the UK, the FTSE 100 declined 0.44 percent.

On Asian markets, Tokyo's Nikkei 225 shed 272.68 points or 0.93 percent to close Thursday at 29,018.33.

China's Shanghai Composite gained 7.38 points or 0.21 percent to 3,525.60.

The Australian All Ordinaries lost 32.90 points or 0.43 percent to 7,600.50.

The Hang Seng in Hong Kong finished 121.75 points or 0.43 percent in front at 28,558.59.

More Indonesia News

Access More

Sign up for Indonesia News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!