US Market tumbles on economy slowdown fears

The US stock market finished volatile session steep lower on Wednesday, 23 September 2020, as risk-off selling triggered after data showing a cooling of U.S. business activity and Federal Reserve officials highlighted the need for Congress to agree on a new round of stimulus to support the economic recovery. Meanwhile, worries over a coronavirus second wave and an increasingly contentious US presidential election also fuelled selloff.

At closing bell, the Dow Jones Industrial Average index tumbled 525.05 points, or 1.92%, to 26,763.13. The S&P 500 index fell 78.65 points, or 2.37%, to 3,236.92. The tech-heavy Nasdaq Composite Index retreated 330.65 points, or 3.02%, to 10,632.98. All 11 of the major S&P sectors closed lower, with energy sector led the rout.

 

Investors were disappointed that Washington lawmakers haven't reached an agreement on more stimulus and uneasy over speculation that the US presidential election could drag on due to slow vote counts or legal challenges. Federal Reserve Chair Jerome Powell said on Wednesday that the central bank was not planning any "major" changes to its Main Street Lending Program, while saying that both the Fed and Congress need to "stay with it" in working to bolster the economic recovery.

Tesla stock plunged 10% on Wednesday, extending 5.6% drop on Tuesday, after CEO Elon Musk downplayed Battery Day expectations, saying new advances wouldn't hit mass production until 2022.

Nike Inc surged 8.8% to a record high after it reported that quarterly digital sales, especially in North America, helped offset a fall in sales at traditional brick-and-mortar stores.

ECONOMIC NEWS: US Business Activity Rises At Slower Pace In September US composite business activity index slipped to 54.4 in September from 54.6 in the previous month, IHS Markit said Wednesday. The flash services purchasing managers index inched down to 54.6 from 55 in August. The flash manufacturing index rose to 53.5 in September from 53.1 in the prior month. This is a 20-month high. Any reading above the 50 neutral mark indicates improving conditions.

Among Indian ADR, Wipro fell 0.84% to $4.72, INFOSYS fell 181% to $13.59, HDFC Bank dropped 0.39% to $48.08, ICICI Bank was down 2.47% to $9.49, and Dr Reddys Labs declined 2.07% to $68.56. WNS Holdings dropped 1.55% to $61.50, Azure Power Global declined 0.23% to $30.24, Tata Motors fell 4.06% to $8.74, and Vedanta dropped 0.58% to $6.86.

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