Wall Street slips into technical losses, tax instability is weighed

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The Wall Street street sign will be displayed outside New York City, New York, USA, June 28, 2021, outside the New York Stock Exchange (NYSE). REUTERS / Andrew Kelly / File Photo

  • Nasdaq leads losses when the main attractions of technology sink
  • S&P 500 trades to 50-day moving average
  • End-of-three options can increase variability
  • Indexes are prepared for weekly losses
  • Indicators Down: Dow 0.49%, S&P 0.71%, Nasdaq 0.96%

September 17 (Reuters) – U.S. stock indexes plummeted on Friday, leading major technology companies, distrusting high corporate taxes, and the upcoming Federal Reserve meeting.

Nasdaq (.IXIC), one of the strongest performers in the US and strongest economic readings since the end of July, is urging investors to enter the economy and move out of technology this week.

“The week is volatile,” said Luis Dudley, managing director of Fednes Hermes International Trading International. .

The three main indicators are now ready for weekly losses, with the SDP 500 heading into its worst two-week performance since the end of February.

While leading Democrats are trying to raise the maximum tax rate on corporations from 21% to 26.5% from now on, there is also a risk that there may be a rise in corporate tax revenue.

According to Dudley, when the two sides negotiate, we expect greater market volatility as changes in corporate tax rates, especially for low-tax sectors such as technology and biotech, and high-income international companies, play a role.

The focus is now on the Federal Reserve meeting next week, with investors arguing that strong economic data this week could prompt the bank to cut its financial stimulus.

Thursday’s data showed an unexpected increase in retail sales.

Treasury bonds have also shown that investors are optimistic about the security of their bonds.

At 11:48 am ET, the Dow Jones Industrial Average (.DJI) fell 168.97 points, or 0.49%, to 34,580.72 points, the S&P 500 (.SPX) 31.57 points, or 0.71%, to 4,442.18 and the Nasdaq Composite (. IXIC) 146.08 points. , Or 0.96%, lost 15,035.68.

Analysts say the S&P 500 was trading near the 50-day moving average, which would be a big boost for the index. Essentially, Friday’s loss could lead to a recovery next week.

50-DMA will be the main support level for the index

Stock options, stock indexes Future and index options contracts expire simultaneously, also known as the three-time wizard, and is expected to cause variability through the trading session.

Among other proponents, vaccine makers Moderna (MRNA.O) and Pfizer (PFE.N) have been embroiled in controversy over whether Americans should take large doses of the Pfizer / BioNTech COVID-19 vaccine. Read more

Declining issues outperformed the NYSE by a 2-to-1 ratio and a 1.4 to 1 ratio over the Nasdaq.

The SSP 500 posted new 52-week highs and 2 new lows, while Nasdak recorded 68 new highs and 60 new lows.

Report by Ambar Warrick in Bengalru; Edited by Saumyadeb Chakrabarty and Arun Koyyur

Our Standards – Thomson Reuters Principles.

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