Dow Jones has declined for 4 consecutive days and lost 1.7% yesterday
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Dow Jones - Stocks Tumble as Investor buy Bonds and Fear Another Crisis. The Dow Jones did not end the day as the worst-performing Index as it did on Tuesday and Wednesday. This time the NASDAQ declined slightly more than the Dow Jones. However, based on weekly data, the US30 is still experiencing the strongest decline. The Dow Jones has declined for 4 consecutive days and shaved 1.70% from its value during yesterday’s session.
SVB Financial Group has been one of the first banking firms to spark concern throughout the market and has seen the stock decline by 60%
2 negative factors mainly influence the stock market. The Federal Reserve raising interest rates and concerns about another banking crisis. SVB Financial Group has been one of the first banking firms to spark concern throughout the market and has seen the stock decline by 60%. The firm has advised that higher interest rates and the poor performance of venture capital to many technology companies have negatively impacted them. The company also launched a $1.75B share sale to raise capital.
Dow Jones 8-Hour Chart on March 10th
In general, the above-sent shockwaves throughout the stock market, and investor sentiment has significantly declined. Investors will now analyse the NFP figure and whether they point towards more rate hikes.
Traders will also continue to monitor technical analysis, which currently points towards a further decline. Though traders will also analyse when the price may become overbought using indicators such as the RSI.
Read the first part of the update by NAGA: British pound against US dollar has been influenced by the UK GDP print. Price action can change if NFP print beats expectations | FXMAG.COM
Summary of the both parts of the update by NAGA:
- The US Dollar declines back to support levels as traders wait for this afternoon’s NFP release.
- The Pound is supported by a higher-than-expected GDP figure which may keep the UK out of a recession in the short term.
- Global stock markets come under significant pressure due to the fear of another banking crisis.
- Interest rates and a lower risk appetite continue to pressure stocks as investors buy bonds again.
