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04.08.2023 02:09 PM
Major US indicators show decline

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US stock indices continued to drop in yesterday's trading. The Dow Jones Industrial Average dropped by 0.4%, NASDAQ lost 0.36%, and S&P 500 decreased by 0.49%.

American indicators began to fall on Wednesday after the sudden credit rating downgrade of the US from AAA to AA+ by Fitch. This was due to the potential deterioration of the country's budget situation over the next three years and the growing national debt, which requires a debt ceiling to be set.

However, this is not the only reason for the Wall Street index slump. Yesterday, macroeconomic data was released, which also contributed to the decline. One factor behind this negative trend was the increase in unemployment benefit claims by 6,000 in a week, reaching 227,000.

The business activity index in the service sector for the past month declined to 52.7% compared to the June figure of 53.9%, surpassing experts' predictions of a drop to 53%.

According to economists, as long as there are no signs of improvement in the labor market, there is a risk of further interest rate hikes. Unemployment remains one of the potential inflationary threats to the US Federal Reserve.

The next meeting of the central regulator will take place in September. All the statistical data received during this time will be considered by the Fed when making decisions on further monetary policy.

The corporate reporting season is in full swing. Among the largest American companies, Apple and Amazon are leading. Traders are eagerly awaiting the results of these companies. Apple is the absolute leader in market capitalization, while Amazon dominates in online trading volume.

Apple is expected to report on the continuation of declining revenue, which was observed in the past two quarters. In addition, investors are interested in information on the potential use of AI in the company's operations.

The stock value of Anheuser-Busch InBev rose by 1.7%, beating expert forecasts. DoorDash's shares also increased by 1.7% due to an improved forecast for annual core earnings and quarterly revenue report, driven by increased demand for their products.

In contrast, Qualcomm dropped by 10% due to a disappointing revenue forecast for the third quarter.

The US is experiencing a record decrease in oil inventories, which, combined with the country's credit rating downgrade, led to significant losses during the previous session. According to official data, oil inventories decreased by 17 million barrels in the last week of July, marking the largest decline in forty years.

However, since yesterday, the situation has started to stabilize, and oil prices are also normalizing. WTI crude oil futures increased by 1% to $80.31, and Brent crude oil futures rose by 0.9% to $83.92.

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