A Night Of Horror, The U.S. Stock V-Shaped Shock! Does This Round Of Decline In Technology Stocks Lead To A Crash?

On Friday, us time, the entire trading of US stocks showed a roller coaster like volatility. The technology dominated Nasdaq composite index once fell more than 4.5%, but later narrowed down. By the end of the day, the NASDAQ closed down 1.27%. Meanwhile, the Dow Jones Industrial Average fell 0.56% and the S & P 500 fell 0.81%. The VIX, which measures market panic, is down more than 8% from the day before, but is still trading above 30.

After the last trading day's plunge, it was clear that technology stocks were under selling pressure on Friday, while the transfer of funds between sectors was still in progress. The consensus among most analysts on Wall Street is that technology stocks have risen too much some time ago, and now it's time for a correction. Including some of the fastest-growing technology companies in recent years, such as Tesla and zoom, their shares have quadrupled this year. Comparing the NASDAQ and the Dow, the former completely outperforms the latter. On the contrary, although the Dow has almost wiped out the decline since this year, almost half of the constituent stocks still show a downward trend within the year and have not come back at all. At present, the stocks in the aviation industry, including those in the cruise industry and the technology sector, are still not affected by the stock market. So on Friday, while we saw a general slump in technology stocks, Boeing rose 1.35%, JPMorgan Chase and Citibank both rose more than 2%, and Carnival Cruise rose 5.34%. Over the week, the Dow fell 2.3%, the S & P 500 fell 1.8%, and the NASDAQ fell 3.7%. At present, mainstream analysts don't think that this round of technology stock decline will trigger the US stock crash. More people regard this as a healthy adjustment of the market. And that adjustment can last for a while.

The U.S. unemployment rate fell to 8.4%, and the Federal Reserve says the economy needs low interest rates for years to come

In addition, two news on Friday also helped to narrow the decline to some extent. The first is good employment data. The U.S. Department of labor's non farm employment report for August released on Friday showed that 1.37 million new jobs were added in the month, and the unemployment rate dropped to 8.4%, better than market expectations. In addition, US Federal Reserve Chairman Colin Powell said in a speech that the US economy needs low interest rates in the coming years. But it will take a long time for the U.S. economy to recover, and the road to recovery will be more difficult in the future.

European stocks fell on the 4th, and shares of Spain's two major banks rose sharply after negotiating a merger

On the European stock market, the European stock market fell due to the influence of the US stock market being dragged down by the technology sector earlier. The FTSE 100 fell 0.89% in London, CAC40 in Paris and 1.65% in Frankfurt. Meanwhile, the pan European Stoxx 600 index fell 1.13%. The technology sector fell 2.6%, while the banking sector rose 1.6%. Meanwhile, kexar bank and banquia bank, one of Spain's top five banks, announced recently that they have entered into merger negotiations to create Spain's largest bank. Shares of keksa bank closed up more than 12%, while banquia rose more than 32%.

International oil price fell on the 4th

In terms of commodities, oil prices fell sharply, ending four consecutive weeks of gains. West Texas light crude for October delivery fell 3.87% to $39.77 a barrel on Friday. The price of Brent crude oil for delivery fell 66.2% in London. This week's downward pressure on the stock market, coupled with the US Congress's new round of fiscal stimulus plan is still in a stalemate stage, and the market is worried that oil demand will continue to weaken due to the additional outbreak of the epidemic, so this pessimism has dragged down the trend of oil prices.

International gold prices fell slightly on the 4th

On the gold front, better than expected employment data boosted the dollar and depressed gold prices, bringing the cumulative decline of gold prices to about 2% this week. Gold futures closed at $1934.3 an ounce, down 0.18%. The spot price of gold once hovered around $1930 an ounce. (Financial observer Chen Qian)