Wall Street closes down despite improvement in confidence indicator

The preliminary value of the consumer confidence index, measured by the University of Michigan, pointed to an increase in the indicator in September, from 74,1 to 78,9, surpassing the 75 anticipated by analysts. But the actions did not reflect the optimism of consumption.


Wall Street closed again with losses. The Dow Jones fell 0,88% to 27.657,4 points; the S&P 500 decreased 1,12% to 3.319,5 points; and the Nasdaq fell 1,07% to 10.793,28 points.

The NYSE was once again pressured by technology.

The contradictory information regarding the timing of the arrival of the Covid-19 vaccine ended up leaving investors more indecisive in their decision-making.

The Commerce Department places restrictions on transactions on WeChat and TikTok

The reaction of investors was also influenced by the news that the Commerce Department places restrictions on transactions on WeChat and TikTok.

The USA has banned downloads of this app and also those from WeChat since Sunday. The president, Donald Trump, assured that he made this decision to “safeguard national security”

The Government announced transaction bans related to the WeChat and TikTok applications as of September 20, which include distribution, maintenance and updates through the app store in the USA. Also including the provision of payment services through WeChat.

The stock market crash comes on the day it was revealed that consumer confidence in the U.S. had a surprising increase in September.

This Friday, the University of Michigan confidence indicator was released, which rose to 78,9 in September from the 74,1 that marked the previous month, and was above consensus expectations, which were 75. “The improvement in the expectations of the labor market - including the reduction of fear of job loss - the commercial and country conditions as a whole explain the general improvement ”, point out the experts at Pantheon Macroeconomic.

The confidence reading component in the current conditions went from 82,9 to 87,5 (the estimate was 83,1) and the expectations reading for the coming months rose from 68,5 to 73,3 when the estimate was 67,2.

The economic outlook in the US also improved, according to data from August. The August Leading Index rose 1,2%, practically in line with expectations.

West Texas crude oil falls 0,20% to $ 40,89 a barrel.

The euro fell 0,03% to $ 1,1844.

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