Goldman Sachs Data Pull Down US Equity Index
By Daisy Joseph
The US Stock market has been riding high in hopes that tax cuts, deregulations and infrastructure spending would commence soon. Now, the investors have understood that the political risks are too high for Trump to take any immediate action. The failure of healthcare bill has forced the investors not to be entirely optimistic. The recent earnings report from Goldman Sachs has dampened the mood further.
The earnings of Goldman Sachs has gone down below the estimated value, which has shocked the Wall Street. Investors are quick to book their profits in the dull market. The losses incurred are not threatening because of the geopolitical issues such as Syria, North Korea, and presidential election in France.
The Goldman Sachs contributed to a loss of 73 points as Dow Jones Industrial Average lost 110 points. Johnson and Johnson was also responsible for the downfall. The S&P 500 index was not spared as it lost 0.3% due to the disappointment in energy, healthcare and financial sectors. The NASDAQ composite also lost 0.1%. IBM stocks also lost 5% after the quarterly earnings report showed failed sales despite meeting earnings expectations. IBM has been recording declining sales year over year in the past five years.
The US dollar reached its three week low as traders were worried about trade talks between Japan and USA. UK Prime Minister Theresa May has a stronger support in the general election with looming Brexit negotiations. This helped the Pound to gain against the dollar.
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