FX.co ★ US stock market at a loss: future looks extremely uncertain

Multidirectional movement of the main stock indicators was recorded on the US stock market, following the results of yesterday's trading session. The indices have diverged in different angles, since recent reports have been uncertain.

The Dow Jones Industrial Average was up 0.38%, or 114.32 points at the end of trading, which made it possible for it to move to 30,129.83 points.

The Standard & Poor's 500 index marginally increased – by 0.07%, or 2.75 points. Its current level was 3,690. 01 points.

On the other hand, the NASDAQ Composite index was among those who reacted negatively to what was happening around them. It fell by 0.29%, or 36.8 points, which moved it to the area of 12,771.11 points.

As for the statistics on the US economy, it still remains quite ambiguous. In particular, the total number of US citizens who applied for unemployment benefits for the first time fell by about 89,000 people last week. Now this figure is at the level of 803,000 people. However, at the same time, last month's indicator was also revised, which turned out to be worse than previously announced. From the level of 885,000. it was sent to the mark of 892,000 people. Nevertheless, the preliminary expectations of analysts were much more negative than the real data: it was assumed that there would be no changes at all and everything would remain as it is, i.e. at the level of 885,000 people.

The decline was noted for the indicator of the population's income. Over the last month of autumn, their level on average decreased by 1.1% compared to the previous period. Moreover, spending by US residents also fell by an average of 0.4%, the first decline in more than seven months. Preliminary data of experts did not coincide with official statistics: they indicated a possible reduction of the first indicator by 0.3%, and the second – from 0.2% to 0.4%.

The level of sales of new homes in America has rapidly collapsed. The drop occurred immediately by 11%, while a month earlier there was already a decline in the region of 5.7%, despite the preliminary assurances of analysts about a reduction of no more than 0.3%.

The level of the consumer confidence index in the country over the last month of the year increased quite well: from 76.9 points to 80.7 points. However, even here the experts' forecasts were not justified: it was expected that the growth would be somewhat more significant and the indicator would be able to reach 81.4 points.

The main wave of news that makes the indicators move more intensively in one direction or another concerns the negotiation process regarding the financial incentive program, which has still not reached a logical conclusion. This time, US President Donald Trump harshly criticized the bill signed in Congress, calling the proposed amounts of direct payments to taxpayers too small. He demanded an increase in payments not only to the civilian population, but also to small businesses. Thus, Trump insists that the payments average about $2,000.

However, not all government officials agree with such a revision. That is why, most likely, America will face a wave of difficulties in accepting a financial assistance package again in the near future. Uncertainty, in turn, will exert significant pressure on market participants, who are already tired of this whole process.

Recall that earlier it was already decided to set payments worth $600 per person, and the total amount of assistance from the state was supposed to reach $900 billion. In the meantime, the authorities cannot agree among themselves, the crisis in the economy is only getting worse, and the pressure on the stock markets is growing.