Asia Morning: Dow Sheds 509 Points in Market Sell-off
Ming Lam, George Lam September 22, 2020 12:37 AM
Concerns over further coronavirus-related shutdowns in Europe and uncertainty surrounding the U.S. election added to pressure on stocks...
On Monday, the Dow Jones Industrial Average once tumbled over 900 points before reducing its loss to 509 points (-1.84%) and closing at 27147. The S&P 500 sank 38 points (-1.16%) to 3281, while the Nasdaq 100 managed to close 43 points higher (+0.40%) at 10980.
Dow Jones Industrial Average: Daily Chart
Sources: GAIN Capital, TradingView
The market sell-off was triggered by growing concerns over further coronavirus-related shutdowns in Europe. And uncertainty surrounding the U.S. election added to pressure on stocks.
Automobiles & Components (-4.81%), Capital Goods (-4.01%), Materials (-3.41%) sectors lost the most. Energy-related stocks - such as TechnipFMC (FTI -10.3%), Halliburton (HAL -8.69%) and National Oilwell Varco (NOV -7.54%) - slid along with oil prices.
General Electric (GE -7.70%), Universal Health Services (UHS -8.17%), Illumina (ILMN -8.48%) and Delta Air Lines (DAL -9.20%) were also top losers. Meanwhile, Apple (AAPL +3.03%) and Tesla (TSLA +1.64%) ended higher.
Approximately 61.4% (52.1% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 41.0% (52.1% in the prior session) were trading above their 20-day moving average.
European stocks suffered deeper losses. The Stoxx Europe 600 Index plunged 3.24%, Germany's DAX 30 tumbled 4.37%, France's CAC 40 slid 3.74%, and the U.K.'s FTSE 100 was down 3.38%.
The benchmark U.S. 10-year Treasury yield declined to 0.668% from 0.690% Friday.
Commodities prices were also impacted by souring market sentiment as well as a strengthening U.S. dollar. U.S. WTI crude oil futures (October) plummeted 4.4% to $39.31 a barrel, and spot gold slumped $42.00 (-2.2%) to $1,912 an ounce. Spot silver shed 7.7% to $24.72 an ounce.
On the forex front, the U.S. dollar rebounded against its major peers, with the ICE U.S. Dollar Index bouncing 0.6% on day to 93.55.
EUR/USD slid 0.7% to 1.1766. Later today, the eurozone's Consumer Confidence Index for September will be released (-14.6 expected).
GBP/USD lost 0.9% to 1.2819, wiping out most of the gains made last week.
USD/JPY gained 0.2% to 104.69, halting a five-day decline.
Commodity-linked currencies were broadly lower against the greenback, as risk appetite faded. AUD/USD dropped 0.9% to 0.7229 and NZD/USD plunged 1.4% to 0.6665, while USD/CAD climbed 0.8% to 1.3303.
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