The U.S. stock market remains under pressure as the Dow Jones index fell severely on Monday where the bearish move was the biggest in the last 14 months, as the energy sector companies struggled in bringing their share prices up.
The S&P500 index also plunged by nearly 0.2% where it broke the support level of 1650 and tested the 1641 area, as the traders are anticipating a major bearish move on Wednesday after the FOMC meeting minutes. The meeting minutes would be based on the ideas as to what would be the criteria regarding the stimulus plan, whether it would be continued with the same magnanimous amount every month or should it be reduced to a certain extent.
Energy Sector Shares Tumble
Companies including Apache, Marathon Oil Corp. and Cobalt International Energy Inc. lost their market capitalization on Monday where the stock prices fell by 4.5%, 3.6%, and 15% respectively. In addition to that, the financial shares faced some downward pressure where they collectively fell by 0.8% where JPMorgan’s shares slid by just above 2% hence causing the stock price to fall to $52 a share.
Apple on the Run
As mentioned in our report last week, Apple would go marching on if it sustains above $506 a share level, and so it did where the stock price has not moved up to $513.13 level after gaining 2.2%. If seen on a broader perspective, the value of
Apple’s share has risen by 13% in the past six trading days. Apple is set to release another iPhone next month so it’s a high time for investors to go long on Apple’s shares, as they also got a hint from a billionaire investor Icahn, who has a massive position open in Apple’s stocks.
Moreover, the health-care companies along with IT sector firms gained considerably, where Intel’s shares are now trading above the $22 level after gaining 2.2% as the ratings for these shares have been changed to neutral from underweight.
Although the technology and health-care firms faced some progress in their share prices on Monday, but these gains were overshadowed by the losses faced by the energy sector shares. Therefore, the overall stock market favored the bears to enter the market, amidst the speculation that tapering of the quantitative easing plan may be done by the FED members next month as the economy is picking up gradually.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org