Pessimistic mood enables market slide

Published: October 01 2022, 03:00 GMT+0

Pessimistic mood enables market slide

  • Nike was the biggest decliner yesterday after giving up 12.81% Bright Health had a negative day yesterday (down 6.25%).
  • CAC moves up to 5,762.34 (up 1.51%).

Yesterday's market activity meant that leading equity indices in the US declined as Dow Jones was down 1.71% before closing the session at 28,726. After dropping 1.51%, S&P 500 closed at 3,585.62.

US markets are currently closed but will resume Monday in around 2 days time. European markets closed higher yesterday whilst CAC added 1.51% to trade at 5,762.34. Asia-Pacific markets were down yesterday as Nikkei is currently down 1.83% and trading around 25,937.

Markets are trading lower today despite some positive data published earlier as United States Initial Jobless Claims beat the 215,000 projections, with 193,000. Highly important GDP data from United States beat analyst expectations of -0.6 with a reading of -0.6.

Amid the market gloom, United States Core PCE Price Index (MoM) (Aug) came out at 0.6, while a consensus of analysts was expecting 0.5.

Furthermore, United States ISM Manufacturing PMI (Sep) scheduled to come out Monday.

While markets are generally down so far today, some stocks outperformed such as GBP/NZD gained 2.58% to reach 1.9951.

Yesterday's bearishness affected individual stocks as Nike lost 12.81% yesterday before closing at $83.12. Bright Health had a negative day yesterday (down 6.25%).

Bright Health sheds 6.25% within $1.05 to $1.18 daily range

Yesterday's session continued down the same path: an influx of sellers pushed Bright Health to end the session lower around $1.05, while establishing a $1.05 to $1.18 session range yesterday. The company has a market cap of $661.18 million with an average daily trading volume of 2 million shares. So far in 2022, it has been under-performing the Nasdaq by 21.49%.

Yesterday's upbeat market sentiment sees GBP/NZD gain 2.58%

Yesterday's session pointed in the same direction — GBP/NZD closed yesterday at 1.9951 (with a daily low of 1.9382) after ending Thursday at 1.945 and gaining 2.58%.