(Bloomberg) – Stocks fell amid uncertain backdrop of the prospect of a new stimulus package to support the US economic recovery. The dollar has gone up.
The S&P 500 fell, led by energy and commodities companies. The gauge was on track for its fourth consecutive weekly decline – the longest streak of losses since August 2019. Costco Wholesale Corp. collapsed after the warehouse retailer reported higher spending to prevent the spread of the coronavirus.
A final attempt by Democrats and the White House to restart negotiations on new stimulus measures has drawn skepticism in Congress that a deal could be reached and enshrined in law by the November election. It is feared that the two sides will still remain very far apart on the size of a relief package. U.S. durable goods orders rose in August at a slower-than-expected pace, adding to fears that a recovery will be slow amid a rise in global coronavirus cases.
“There is no doubt that concerns about the lack of fiscal stimulus as well as concerns about another wave of a pandemic are fueling the decline,” said Matt Maley, chief market strategist at Miller Tabak + Co.
The Russell 2000 Small Business Index fell below its 200-day moving average, the first major US benchmark to do so. The trajectory of small-cap stocks is often seen as an indicator of the strength of the US economy, so the bearish technical signal represents a further blow to investor sentiment.
Here are some of the main movements in the markets:
- The S&P 500 fell 0.3% at 9:50 a.m. New York time.
- The Stoxx Europe 600 index fell 0.5%.
- The MSCI Asia Pacific Index climbed 0.4%.
- The Bloomberg Dollar Spot Index rose 0.3%.
- The euro plunged 0.3% to $ 1.1636.
- The Japanese yen depreciated 0.1% to 105.50 per dollar.
- The yield on 10-year treasury bills fell one basis point to 0.66%.
- Germany’s 10-year yield fell two basis points to -0.52%.
- The UK 10-year yield fell three basis points to 0.194%.
- West Texas Intermediate crude fell 0.4% to $ 40.13 a barrel.
- Gold fell 0.4% to $ 1,861.35 an ounce.
- Silver weakened 1.4% to $ 22.83 an ounce.
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