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A sharp and significant drop in US indicators
07:58 2021-09-21 UTC--4

US indicators showed a significant decline yesterday. Thus, the industrial Dow Jones lost 1.78%, the broad S&P 500 indicator fell by 1.7%, and the high-tech NASDAQ fell by 2.19%. It should be noted that the decline in the S&P 500 and NASDAQ indicators has become the maximum in the last five months.

One of the main reasons for such a sharp drop was the expected bankruptcy of the Chinese company Evergrande, which harms Asian stock markets and the American ones. Investors are afraid that the bankruptcy of the company will affect other areas of the Chinese economy.

In addition to the situation in the Chinese market, investors' attention is focused on the upcoming Fed meeting, which will be held tomorrow. According to the results of the meeting, it is expected that data on rates and asset repurchase will be published. In addition, the macroeconomic scenario for the United States should be announced.

Investors are still hoping to get information about the timing of the curtailment of the state program to support the economy. However, the Fed has already received earlier statements that the regulator does not intend to rush to this decision yet.

According to experts, as soon as the Fed starts tightening monetary and tax policy, the S&P 500 indicator will be corrected by 10%, and in the case of a decline in economic growth – by 20%.

The energy and banking sectors suffered the most, where the decline reached 3% and 2.9%, respectively. Shares of utility companies lost less than others.

At the same time, the securities of air carriers increased in price due to the government's notification of the planned easing of restrictive measures for passengers vaccinated against coronavirus arriving from several European and other countries.

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Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.