• The main US stock indices fell on the results of today's trading

Market news

25 September 2017

The main US stock indices fell on the results of today's trading

Major US stock indexes finished trading in negative territory, with Nasdaq falling most of all against the backdrop of Facebook and Apple losses, which fell sharply.

A slight influence on the dynamics of trading was provided by economic data for the US and comments by a number of representatives of the Federal Reserve System.

Under the impact of the decline in production-related indicators, the index of economic activity from the Federal Reserve Bank of Chicago (CFNAI) fell to -0.31 in August from +0.03 in July. Two of the four broad categories of indicators that make up the index have declined since July, and two of the four categories made a negative contribution to the index in August. The three-month moving average of the CFNAI-MA3 index fell to -0.04 in August from neutral reading in July.

In the meantime, FRB President Chicago Evans said that the Fed needs to see "clear signs of rising inflationary pressures and upward pressure on wages" before raising rates again. This is due to the fact that inflation does not reach the target level, and inflation expectations remain low.

Meanwhile, the president of the Federal Reserve Bank of New York, Dudley, said that the Fed will continue to increase as the economy recovers. "I expect growth and stabilization of inflation near the target level in the medium term," Dudley said. "In response, the Fed will probably continue to turn off monetary stimulus."

Oil prices rose significantly on Monday after major producers said the world market was on the road to rebalancing, while Turkey threatened to cut oil flows from the Iraqi region of Kurdistan to its ports. As a result, the price of Brent crude oil has reached its maximum value since mid-July 2015, while the quotes of WTI crude are close to the highs observed in mid-April 2017.

Components of the DOW index finished trading mixed (15 in positive territory, 15 in negative territory). Outsider were shares of Visa Inc. (V, -2.43%). Exxon Mobil Corporation (XOM, + 1.32%) was the leader of growth.

Most sectors of the S & P index recorded a decline. The largest decline was registered in the technological sector (-1.4%). The base resources sector grew most (+ 0.7%).

At closing:

DJIA -0.24% 22.295.96 -53.63

Nasdaq -0.88% 6,370.59 -56.33

S & P -0.22% 2,496.67 -5.55

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