Archived News
In August 2021 Finfeed changed from a website that covered ASX listed news to a website
that covered a select range of ASX
listed small cap Biotech stocks that we are personally
invested in: find out more.
The old Finfeed website, and all of the old articles are kept here for record keeping purposes.
VISIT NEW SITETech stocks drag markets lower
2 minute read
The S&P/ASX 200 gained 0.81% on Thursday to reach 6,112.60 points, however the futures are pointing to a lower open on the local market this morning with the ASX SPI200 Index down 119 points at 8:30 AEST.
This follows a tough session in the US overnight where the main indexes marked their biggest one-day falls in months led by a selloff in tech stock.
Dragged down by the majors — Facebook, Apple, Microsoft, Alphabet, Amazon.com — the Nasdaq closed down 4.96%, a sharp pull back from record high levels. Microsoft lost 6.2% and Apple was down 8%.
Despite its overnight fall of almost 5%, the Nasdaq is still up more than 60% since early April.
The S&P 500 also pulled back from record highs, dropping 3.51% to 3,455 points. The Dow lost over 800 points for the day.
The number of US jobless claims dropped by more than expected last week but remained considerable elevated. The US monthly payrolls report is due out tonight.
Growth in the US services industry slowed in August, likely as the boost from the reopening of businesses and fiscal stimulus faded.
The VIX volatility index crossed above its 200-day moving average to hit its highest level in weeks.
Continuing a weak couple of days for oil, US oil lost 0.5% to $US41.29/barrel and Brent crude dropped 1% to $44.01/barrel.
Iron ore rose 2.1% to reach $US129.92 a tonne. Supporting iron ore demand is a return to demand for real estate after the COVID crisis began. ANZ report that, particularly in China, housing transactions have picked up strongly on the back of pent-up demand.
Spot gold fell 1.4% to $US1943.58 an ounce
The Aussie dollar is currently buying US$0.7267.
September 21 will see a rebalancing of S&P indexes. Buy now pay later provider Zip Money will be added to the closely watched S&P/ASX200 Index, which fund managers often use as a performance benchmark. Payments providers Sezzle and Splitit will join the S&P/ASX All Technology Index.
The ASX report that the average daily number of trades was down 13% in August compared to August 2019. This marks the second month straight of double digit declines in trading volumes.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
Publishers Notice
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain.