US Stocks extend losses on growth woes

24 Aug 2022 , 09:05 AM

The US stocks continued downward move on Tuesday, 23 August 2022, with the Dow and the S&P 500 both closing lower for a third straight session, after weaker than expected economic data heightened concerns about the health of the US economy. Risk sentiments also weighed down ahead of Fed Chair Jerome Powells speech at the annual gathering of central bankers in Jackson Hole, Wyoming on Friday. Expectations are that Federal Reserve policymakers would take a hawkish stance on his interest rate plans at this weeks economic symposium to quell the surge in inflation, despite some signs of progress. At the close of trade, the Dow Jones Industrial Average index stumbled 643.13 points, or 1.91%, to 33,063.61. The S&P500 index was down by 90.49 points, or 2.14%, to 4,137.99. The tech-heavy Nasdaq Composite Index decreased by 323.64 points, or 2.55%, to 12,381.57. Real estate, health care and communication services were the worst performers in the S&P 500. Meanwhile, energy was the biggest winner in the broader market index, on the back of rising oil prices. ECONOMIC NEWS: Data from the Commerce Department showed new home sales in the U.S. dropped 12.6% month-over-month to a seasonally adjusted 511,000 in July. Data from Markit Economics showed the S&P Global US Composite PMI came in with a score of 45 for August, down from a reading of 47.7 in July. The Manufacturing PMI fell to 51.3 in August from 52.2 a month earlier, while the Services PMI dropped to 44.1 in the month from 47.3 in July. A reading below 50 indicates a reduction in business activity. Among individual companies, Zoom Video shares plunged after the company lowered its full-year forecast. Twitter shares tumbled on news about filing of complaints against the company at the Securities Exchange Commission. Shares of Palo Alto Networks soared after the company reported stronger than expected fourth-quarter results thanks to a surge in billings amid growing cybersecurity demand. Among Indian ADR, Dr Reddys Labs added 1.54% to $52.71, Tata Motors added 2.27% to $28.89, WNS Holdings rose 0.4% to $86.16, HDFC Bank climbed up 0.1% to $62.20, and ICICI Bank grew 1.5% to $21.59. Azure Power Global dropped 2.1% to $10.60 and INFOSYS was down 1.4% to $19.25. Wipro was steady at $5.19. Powered by Capital Market – Live News