After several days of the rally which pushed stocks to record levels, the US stock market began to decline. The Dow Jones fell by 0.54%, to 35,213.12, the S&P 500 index declined by 0.58% to 4,470.00. The NASDAQ Composite lost 0.64%, dropping to 14,945.81.
Experts believe that there are several reasons for a decline. The first one is the terrorist act that occurred in Afghanistan. The US military forces suffered heavy losses. Reportedly, 12 American soldiers and several dozen people among the civilian population were killed. Everyone is waiting for the statement of the US president on this occasion.
Apart from that, investors are waiting for the upcoming Jackson Hole Symposium and Jerome Powell's testimony. Analysts expect the regulator to announce its decision on the early tapering of the bond-buying program. At the same time, the majority believe that Powell will not clarify the situation. He may even evade this topic.
According to experts, now is a good time for the gradual reduction of asset purchases. The labor market is recovering slowly but surely. The inflation rate is above the target. The vaccination rate is also high.
Additionally, US GDP rose by 6.6% in annual terms in the second quarter of this year. At the same time, according to preliminary estimates, an increase of 6.5% was expected.
At the same time, employment in the United States has worsened slightly. Over the past week, the number of initial jobless claims increased by 4,000 and reached 353,000. Economists had expected a decrease to 350,000.
Despite the overall declined in the stock market, some stocks managed to jump. Lordstown Motors Corp. shares added 38.8% after the appointment of Daniel A. Ninivaji, a CEO with extensive work experience.
Palo Alto Networks, Inc. shares gained 2.3% thanks to analysts' forecasts regarding cybersecurity companies. Shares of cloud solutions provider Salesforce also lifted up by 2.7%. Despite a decline in the net profit in the second quarter of this year, the company was still able to improve its annual forecasts.
Microsoft Corp. shares shed 1% due to personnel changes that occurred in the company. Charlie Bell, the former head of Amazon Web Services (AWS), was appointed to the position of vice president. Andy Jesse, one of the main experts in the field of cloud computing, also received position in the company.
Delta Air Lines shares fell by 1.3%. The company said employees would have to pay $200 more every month for their company-sponsored healthcare plan if they choose to not be vaccinated against COVID-19.