Major stock indexes on the other side of the Atlantic closed in negative territory, as technology dragged Wall Street into the red. It didn’t help the report that found Americans more pessimistic about the future of the economy.
The Dow Jones Industrial Average closed 1.56% lower at 30,946.99 points, and the Standard & Poor’s 500 Index fell 2.01% to 3,821.55 points.
For its part, the Nasdaq Technology Index decreased by 2.98% to settle at 11181.54 points. Despite this, there has been mainly the downfall of giants such as Amazon and Tesla.
Operators have taken another “realistic shower” after a worrying report on consumer confidence, Bloomberg reports. A gauge of consumers’ expectations of economic developments – which reflects a six-month forecast – has fallen to its lowest level in a decade, discouraging investors.
The data comes at a time when analysts remain optimistic about corporate earnings for the quarter that’s coming to an end – net margins are expected for total S&P 500 listed companies.
However, the bleak economic outlook has pushed Wall Street’s major indexes into negative territory – after being up around 1%.
The quarterly restructuring of asset portfolios also fueled volatility in Tuesday’s session.
For strategists at Goldman Sachs, the outlook for corporate net profit margins this quarter is too optimistic, which the bank believes puts stocks at risk of further losses when Wall Street analysts cut their estimates.
As Max Kettner, a strategist at HSBC, sees stocks have yet to reflect the impact of a potential recession, expectations for corporate results are likely to be revised down.
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