S&P 500, Nasdaq, Dow Fell Lower on August 10 amid Global Tensions
This week, the S&P 500 started on a stronger note by rising to a new record high. On Tuesday, August 8, despite that new record high, the market pulled back and closed lower due to decreased risk appetite. On Thursday, the S&P 500 started the day with weaker sentiment and closed the day below the support level of 2,450.
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Ten of the S&P 500’s 11 major sectors closed negative on August 10, 2017. A weakness in the consumer discretionary, financials, and information technology sectors weighed on the market. Utilities was the only sector that closed positive on August 10. Increased geopolitical tensions between North Korea and the United States, which were intensified by a sort of war of words, decreased the risk appetite in the market and increased selling pressures.
On the economic data front and according to the United States Department of Labor, the US initial jobless claims rose to 244,000 from 241,000. The Producer Price Index (or PPI) fell 0.10%, while the market had forecast a rise of 0.10%. The market is looking forward to the release of the US core consumer price index, which is scheduled to be released at 8:30 AM EST on Friday, August 11.
On August 10, the S&P 500 started the day lower and trended lower to its lowest level in a month. The S&P 500 CBOE Volatility Index (or VIX) measures uncertainty in the market. On August 10, it rose 44.4% to 16.0. The VIX is measured on a scale of 1–100 with 20 as the historical average. It’s also called the fear index. It usually moves opposite to the movements of stocks and rises when the S&P 500 falls.
The Nasdaq and the Dow
Similar to the S&P 500, the Nasdaq Composite Index and the Dow Jones Industrial Average also started the day lower and trended lower on August 10. The Nasdaq Composite Index fell 2.1% and closed the day at 6,216.87. The Dow Jones Industrial Average fell 0.93% and closed at 21,844.01. In the next part, we’ll see how commodities are performing in the early hours of August 11.