American financial backers are taking precautions ahead of the financial statements release period.
The ongoing earnings season and the upcoming U.S. presidential election are causing some apprehension on Wall Street. The Dow Jones Industrial Average finished 0.8% lower at 42,931 points. The NASDAQ Composite, which focuses on tech stocks, managed a 0.3% increase to 18,540. The S&P 500, a comprehensive index, dipped 0.2% to 5,853. In the next few days, we're set to receive financial reports from 114 S&P 500 companies, such as IBM, Tesla, and Coca-Cola. Many analysts anticipate these figures will dictate the U.S. stock market's trajectory going forward.
Investors are also scrutinizing the U.S. presidential election, scheduled for November 5th. Recent polls indicate a close contest between Democrat Kamala Harris and Republican Donald Trump. "The uncertainty will probably persist until the election day," penned analysts at SEB bank.
Bitcoin gains from Trump speculation
Rumors of a potential Trump win in the U.S. presidential election are fueling interest in cryptocurrencies. Bitcoin temporarily spiked by 1.6% to $69,487, its peak since early June, before correcting down to $67,449 due to profit-taking. Ethereum, another digital currency, also saw a 1.2% jump. The former U.S. president had mentioned at a campaign event that he would adopt a more crypto-friendly stance if re-elected. "With only 15 days left before the U.S. elections, investors must decide if now is the right time to take a bolder stance," commented Chris Weston, chief analyst at the Australian online broker Pepperstone.
Uncertainty regarding the Chinese economy is causing uncertainties. Market participants are still awaiting more details on fiscal stimulus measures from political leaders. "Detailed plans could be made known as late as late October or early November, following the meeting of the Standing Committee of the National People's Congress," predicted Chaoping Zhu, strategist at JPMorgan's wealth management division in Shanghai. Even the rumored interest rate cut by the Chinese central bank has only mildly lifted investor spirits.
Spirit Airlines and Boeing see gains
Spirit Airlines played a significant role in the day's stock fluctuations, as its shares soared by about 53%. The Florida-based low-cost carrier revealed it had reached an agreement with its credit card processor to extend the deadline for its debt refinancing. Investors also purchased shares in Boeing, with the aircraft maker's stock rising by 3.1%. The firm and labor unions have agreed on a new wage proposal.
However, a negative analyst comment led to a decline in UPS shares, with the world's largest package delivery company experiencing a 3.4% drop. Analysts at Barclays downgraded the stock to "underweight" from "equal weight," citing weak demand for package services and intense competition from Amazon and FedEx.
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The ongoingeconomic uncertainties, including the U.S. presidential election and potential China fiscal stimulus measures, are causing anxiety among investors. Despite these concerns, Bitcoin temporarily surged due to rumors of a Trump win and his potential crypto-friendly stance.
The positive news about Spirit Airlines and Boeing, such as the debt refinancing agreement and new wage proposal, have led to significant gains in their shares, providing some positive momentum in the stock market.
