Wall Street was gloomy in August, with indexes falling across the board.

Statistics from the last trading session of August showed a clear gloom on Wall Street. This shows investors' reaction to new information about inflation and monetary policies of countries.

On August 31, 2023, the Nasdaq Composite Index increased by 0.11% to 14,034.97 points. The Dow Jones Industrial Average decreased by 168.33 points, or 0.48%, to end at 34,721.91 points. The S&P 500 Index also decreased by 0.16% to 4,507.66 points.

Wall Street damp in August the indexes of mass decline 1 — US stocks are gloomy, many indexes fell in August (Photo TL)

Although there were consecutive sessions of increase in points at the end of August, overall the indexes all decreased compared to the previous month of July.

The S&P 500 fell 1.77%, the Nasdaq fell 2.17% and the Dow Jones fell 2.36%.

This is considered the market's reaction to the economic statistics released by the US Department of Commerce. In which the personal consumption expenditures (PCE) price index increased by 3.3% in July compared to the same period last year.

Excluding food and energy, the core PCE price index rose 4.2% in July from a year earlier and was up 0.2% from June.

The inflation data, which was in line with expectations, added to investors’ confidence that the Fed will pause its rate hikes. A CME Group forecasting tool, FedWatch, said there was still an 88.5% chance the Fed would pause its rate hikes at its September policy meeting.

The yield on 10-year Treasury bonds also fell to 4.09%, indirectly boosting the growth momentum of some stocks. Notably, shares of electric car manufacturer Tesla increased by 0.46% with a trading volume of up to VND27.7 billion.

Technology stocks also fared well, with Salesforce up 3% after the software vendor posted an upbeat revenue forecast, benefiting from rising prices and flexible demand.

However, some large stocks in the market began to fall sharply. Dollar General fell as much as 12% after the retailer cut its sales forecast. Chinese companies JD and Baidu also fell 2.2% and 1.6%, respectively. Trading volume on the US stock exchange was only $10.2 billion, lower than the average of $10.5 billion over the previous 20 sessions.

Source