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Market wraps a bit lower; concerns over recovery sparking, caused pull back
Stocks retreated from record levels after concerns over economic recovery surfaces. Investors turned nervous due to the recent COVID surges, especially its impact while the recovery is underway, some thought it may cause veer the progress.
All major indexes ended up with losses, with all of them pulling back by more than 1% at session lows. The previous sessions were driving gains due to the concerns about inflation and monetary policy change subsided, but now that another concern is brought forward, the market's direction remains unknown whether this is going to be short-term or not. Even the 10-year Treasury yield dropped, which reflects a part of the inflation concern abating and a part of the rising concerns over sustainability of the recovery.
Updated data regarding the economic recovery is also mixed, with job opening consistently going up, while jobless claims, which was released today, unexpectedly showed an increase. The number of claimers and new filers are still higher than what was recorded prior to the pandemic. These concerns were addressed at the Federal Reserve's meeting, and it was stated on the minutes that such items, as well as other concerns pertaining to the economic recovery, are the reasons why the officials of the central bank are still gunning for keeping the current low interest rates and asset purchase program as is.
Thursday's performance can be summarized as follows:
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