Finance: The Thunder of the Technologists

The thud of Wall Street, where the indices are experiencing the most marked decline in over two months due to the stop of the rally in the technology sector, penalized the European stock exchanges, which in the last part of the session first canceled the gains of the morning and they then slipped into red. The continental lists therefore closed at the lows of the session, with the FTSE MIB in Milan down by 1.54%. The only one to partially limit the damage was Paris, thanks to the 100 billion plan launched by the Elysée to support the economy.
The Dow Jones closed 2.78% down at 28,293 points, the Nasdaq dropped 4.96% to 11,458 points while the S&P 500 dropped 3.51% to 3,455 points. The heavy downturns of the big tech companies, from Apple to Microsoft, from Amazon to Facebook, dragged down the entire list. All returning, it must be said, from a rally that lasted several months.

Among the stocks with the largest capitalization of Piazza Affari, Stmicroelectronics (-6.92%), suffered from the generalized rotation of portfolios towards other sectors, while Atlantia (-6.13%) was hit by the gains after yesterday’s run in day on which the board of directors set up the newco for the spin-off of Autostrade per l’Italia. On the other hand, Exor (+ 1.83%) and Pirelli & C (+ 1.22%) are up.

On the macro front, unemployment subsidies are falling in the US, with new requests falling in the last week by 130 thousand units to 881 thousand, better than expected. The American job market is however in the spotlight, with the overall numbers arriving in the session on Friday 4 September and which are very much followed by the Fed as well as by the market. “The data on employment in the private sector have disappointed, growing significantly less than expected,” said Luigi Nardella of Ceresio Investors.

At the end of August, American companies hired just under half of the workers laid off between March and April. «The return to full employment – he added – will be a slow process, Jerome Powell is fully aware of this. In his virtual speech at the Jackson Hole conference, he clearly made it clear that the central bank’s main objective is work, as long as unemployment has not returned to its pre-Covid historical lows, inflation will not be a concern. ”

On the foreign exchange market, the euro has recovered from the lows of the day below the threshold of 1.18 dollars, but remains far from the top of 1.2012 marked two days since. The single currency changes hands at 1.1813 dollars (1.1861 closing yesterday). One euro is also worth 125.39 yen (126.00), while the dollar-yen ratio is at 106.15 (106.16). Oil was weak: the October WTI futures lost 1.88% to 40.73 dollars a barrel, while the November delivery on Brent dropped 2.21% to 43.45 dollars.

By Dimenico Greco

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