U.S. stocks were very bullish prior to yesterday’s trading session. Investors were very confident when it came to the financial markets a few days ago, as many of the leading U.S. companies posted figures that came out even better than was forecasted. However, the U.S. economy released weak employment data yesterday, while there are also other indications that the U.S. economy is slowing down
There were also very big losses when it came to the Dow Jones, S&P 500 and other indexes yesterday. In fact, the S&P 500 fell from its all-time high. By looking at the situation objectively, it can be said that some of these indices are overvalued. Therefore, it is no surprise that they were hit yesterday.
Stocks such as Bank of America and Microsoft were among the biggest losses, as investors took out their profits. When looking back at the past 2 trading weeks, we can say there was a really big rally.
The reality is that there are diverse negative factors at play currently. For example, with the U.S. economic slowdown, this has resulted in the Federal Reserve announcing further stimulus measures, this is a big sign that previous measures have not even worked. Investors understand this, and this is what has led to the panic lately.
There will be the unemployment claims and other important economic data in the hours ahead. You will need to follow this closely if you intend on trading the leading stocks. A comeback may only be possible if these figures come out much better than analysts predicted.