Last Friday, the U.S. Nasdaq index was down due to the decline of the New York Stock Exchange's large technology stocks. This is not the first time that these stocks have influenced it. This time, the Nasdaq recorded its biggest weekly decline since the end of March. It thus gives up more than 4% over the whole week. But it dropped 0.60% to 10,853.55 points in Friday's session alone.
As for the other indices, we see Wall Street's flagship index, the Dow Jones Industrial Average, which on the other hand appreciated by 0.48% to 27,665.64 points. But it dropped 1.66% for the week as a whole. A weekly fall that is more accentuated on the side of the broad S&P 500 index (-2.51%). However, it grabbed 0.05% to 3.340.97 points and thus finishes close to balance for the last session of the week.
These different levels in the U.S. market indices inspired Maris Ogg of Tower Bridge Advisors to say that the correction will likely continue. Maris Ogg arrived at this estimate based on the sharp drop in the Nasdaq that began late last week. It should be noted, however, that the index had opened higher, just as it had the day before, before erasing its gains shortly after mid-session. Logically, it subsequently fell into the red.
Indeed, Ms. Ogg pointed out in her analysis that sellers come back and bring the market down as soon as it goes up. It is obvious that the Tech sector has been struggling again this Friday while it remains the main concerned by these profit-taking. Indeed, it had indeed made an almost uninterrupted rise since the first days of April until the end of August. This is how he brought the market to its knees.
Note: The consequence was immediate for the " Technologie of informatique " sub-index of the S&P 500, which simply lost 0.75%, reflecting the individual state of each of its values. Alphabet, the parent company of Google, Apple and Amazon fell by 0.67%, 1.31% and 1.85% respectively. As for Facebook, the title fell by 0.55%. Ogg says the decline is a sign of a healthy market and is nothing to be alarmed about. It is justified by the readjustments after a long progression.
On the other hand, the economically sensitive members of the Dow Jones have gone up sharply. For example, Home Depot, 3M, Caterpillar and Nike grew by 1.33%, 1.85%, 2.65% and 2.80% respectively. In addition, like U.S. market indicators, consumer prices also advanced 0.4% over August. This is a slightly slower pace compared to the previous month, although it is higher than expected according to the CPI index.
According to estimates on the CPI index posted last Friday by the Labor Department, a 0.3% increase was expected by analysts. Nikola, a U.S. manufacturer of electric and hydrogen-powered trucks, saw a drop of about 15%. This was the third consecutive fall in the industry. A decline of 4.23% is noted on the side of Peloton while the software giant Oracle gave up 0.58%.