NEW YORK – After two days of the hike, New York Stock Exchange saw a dip this Wednesday owing to the declining energy and tech market. This decline is reported as a result of falling oil prices and weak quarterly reports of the technology companies.
Energy companies failed to provide a hike to the stock market as their share dipped a bit higher than the prediction. Weak Quarterly reports from Adobe Systems (ADBE), and HP (HPQ) upset the tech stocks while drug companies closed on a higher trade.
Keep a close watch on Stock Market
However, trading was light this Wednesday as the investors waited for Britain’s membership referendum happening on Thursday in the European Union. As per the Managing Director of Trading and Derivatives at Charles Schwab, Randy Frederick, investors are tentative towards trading right now and are waiting for the referendum results. He added that the US stock may tumble a bit if Britain votes to leave EU (European Union). According to him, even if Britain continues with EU, US stock market won’t experience any huge reaction.
International experts predict that Britain leaving EU would lead to instability in global markets and disturbances within the economy worldwide. International experts Yellen added that Federal Reserve will get a bit watchful in raising interest rates due to the mixed economy rate that includes an increase in consumer spending but slow investment scenario.
As per US government’s statement, crude oil inventories dropped by approximately 900,000 barrels last week, lesser than expected. However, the oil prices have fallen in the past few years owing to the imbalance in demand and supply. Supply of the crude oil has surpassed the demand leading to the weak energy market.
U.S. crude oil dropped by 72 cents (1.4 percent) to dollar 49.13 per barrel in New York. Benchmark of international oil prices, Brent crude also lost 74 cents (1.5 percent) to $49.88 per barrel in London.
Chevron dipped 95 cents to $102.29 while Marathon is losing 34 cents (2.3 percent) to $14.75.
Healthcare market witnessed a hike in the stocks after Medicare spending remained constant. However if the hike in healthcare domain continues, investors fear that the government may put pressure on drug companies for cost-cutting.
On the other hand, Adobe lost $5.71 (5.7 percent) to $94.01 even after announcing a larger-than-expected quarterly profit. HP also sank by 72 cents (5.4 percent) to $12.61 post forecasting stronger third-quarter results.
Owing to the Britain’s membership referendum situation, British pound saw hike from $1.4663 to $1.4691 a day earlier. However, dollar dipped from 104.76 yen to 104.47 yen. Euro also closed on a hike from $1.1257 to $1.1307.
