USA stocks today turned down late on Monday, and the Dow fell 120 points. Traders are concerned about soaring energy prices and the upcoming U.S. stocks earnings season.
USA Stocks Today : Goldman Sachs( 387.135 , -5.68 , -1.44% ) lowered its USA economic growth forecast for this year and next and predicted that the Fed is not in a hurry to raise interest rates.
The Dow fell 120.65 points, or 0.35%, to 34,625.60 points; the Nasdaq fell 5.03 points, or 0.03%, to 14,574.51 points; the S&P 500 index fell 11.00 points, or 0.25%, to 4,380.34 points.
On Monday, the US bond market was closed for Columbus Day, and the stock market traded normally.
( 33.53 , -0.10 , -0.30% )(107.445, -0.61, -0.56%)107.38 , -0.67 , -0.62% )
USA Stocks Today : Goldman Sachs lowered its USA economic growth forecast for this year and next. Hazus, the group’s chief economist, believes that the slowdown in US economic growth next year will mean that the Fed is not in a hurry to raise interest rates.
Hazus said that although the Fed is expected to announce a reduction in the scale of asset purchases at its next meeting, the process will take several months and interest rates will not increase until 2023.
He said: “What will happen in 2022, I think it will be a cyclical slowdown and intensification, and the inflation rate will also fall. In this environment, I don’t think they will directly raise interest rates.” Any decision will be Depends on economic data. “USA Stocks Today”
( 167.24 , -2.98 , -1.75% )(44.045, -0.30, -0.67%)44.016 , -0.32 , -0.73% ) (97.93, -2.11, -2.11%)97.84 , -2.20 , -2.20% ) (47.415, -0.59, -1.22%)47.385 , -0.62 , -1.28% ) (47.57, 0.19, 0.40%)47.53 , 0.15 , 0.32% )And so on will also announce the financial report this week.
Analysts estimate that the third-quarter earnings growth rate of S&P 500 index companies is 27.6%, which will be the third highest growth rate since 2010.
Goldman Sachs cuts USA economic growth forecast for the third time in two months
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Goldman Sachs chief economist Jan Hatzius and others released a research report on Sunday, lowering the US economic growth forecast for this year and next, which has hit market sentiment.
Goldman Sachs lowered its economic growth forecast for the United States in 2022 from 4.4% to 4%, and lowered its growth forecast for 2021 from 5.7% to 5.6%. Goldman Sachs said that the reason for lowering the US economic growth forecast for this year and next is that fiscal support measures are expected to be reduced before the end of next year, and the recovery of consumer spending will be slower than previously expected.
The Goldman Sachs analyst team headed by Hazus pointed out that “the longer-lasting epidemic has caused a drag on epidemic-sensitive consumer services”, and it is expected that semiconductor supply may not improve until the first half of 2022, thereby delaying inventory replenishment. next year.
This is the third time Goldman Sachs has lowered its US economic growth forecast in two months.
The market continues to evaluate non-agricultural data and its impact on Fed policy (USA Stocks Today)
The market is still weighing the non-agricultural employment report released by the US Department of Labor on Friday. The US Department of Labor report showed that non-agricultural employment increased by only 194,000 in September, which was far below market expectations.
The weak employment report has not eased investors concerns that the Fed will soon scale back its bond purchase program. Employment data is one of the indicators used by the central bank to guide its monetary policy tightening schedule.
Joe LaVorgna, chief US economist at Natixis CIB, said in a report: “The three-month moving average of non-agricultural employment has stabilized at 550,000. At this rate, employment will make up for the new crown by July next year. Pandemic-related job losses. The recovery of the job market has made considerable progress, allowing the Fed to start reducing the scale of debt purchases in November and complete the debt reduction by June next year.”
Advisor Alliance Chief Investment Officer Chris Zaccarelli added that only the non-farm payroll report is “extremely bad” to derail the Fed’s debt reduction plan, and despite the disappointing September report, “but there is no doubt that we do not I believe it is bad enough to prevent the Fed from withdrawing from its debt reduction actions.”
In addition, the September non-agricultural data showed that the unemployment rate fell to 4.8%, far below economists’ forecasts.
Southwest Airlines cancelled nearly 2,000 flights within two days of October 9th and 10th due to air traffic control and weather conditions, accounting for about a quarter of the original scheduled flights.
Flexion stock price rose sharply. Pacira Biosciences, a pharmaceutical manufacturer, is reported to be close to reaching a $630 million acquisition deal with Flexion, a biopharmaceutical company.