Wall Street’s main indexes fell for a fourth consecutive session on Thursday, after Europe’s central bank said it would defer interest rate hikes and offered banks a new round of cheap loans, raising fresh concerns about global economic growth.
Stocks have stalled after a strong rally to start 2019 that was fuelled by optimism over a US-China trade deal and expectations the Federal Reserve will be less aggressive on interest rates. The benchmark S&P 500 has climbed 9.7 per cent this year, but investors have said it is unclear what will drive the next move higher for stocks.
On Thursday, the Dow Jones Industrial Average fell 200.23 points, or 0.78 per cent, to 25,473.23, the S&P 500 lost 22.52 points, or 0.81 per cent, to 2,748.93 and the Nasdaq Composite dropped 84.46 points, or 1.13 per cent, to 7,421.46.
The closely watched Dow Jones Transport Average fell 1 per cent, its 10th consecutive drop for its longest streak of declines since February 2009. The transport index was dragged down by FedEx Corp shares, which dropped 3.0 per cent as Citigroup Inc cut its quarterly profit estimates and price target for the package delivery company.
The S&P 500 closed below its 200-day moving average, a closely watched technical level, for the first time in about a month. Consumer discretionary and financials were the worst performing major S&P 500 sectors. Utilities, a defensive group, was the lone major sector in positive territory. Adding to the dour market tone, Kroger Co shares tumbled 10 per cent after the grocer projected annual profit below Wall Street estimates.Morning-Market-Note-Friday-8th-March