(Reuters) – Main Wall Street indices took a breather on Friday after surging sharply this week as Democrat Joe Biden moved closer to victory in a tough election, while reporting jobs Monthly highlights the economic challenge that the next US president faces.
Biden has led President Donald Trump in the battlefield states of Pennsylvania and Georgia, bringing him to the brink of winning the White House hours after Trump falsely claimed the election had been “stolen”; out of his hand.
Scott Brown, chief economist at Raymond James in St. Petersburg, Florida, said: “The markets were pretty comfortable with that idea (about a Biden win), but if it was disputed, it would be. A little more uncertainty.
“Even if these states are really close together, we might have to go back and re-enumerate them, so we’re in for a long period of uncertainty.”
Despite Friday’s losses, the standard S&P 500 and the tech-heavy Nasdaq are still on track for their best week since April as the prospect of a policy standoff in Washington eases regulatory worries. tighter intentions for US companies.
Republicans could keep control of the US Senate pending the results of the four undecided races, and they will likely block large portions of Biden’s legislative program, including healthcare expansion. and combat climate change.
Meanwhile, the closely watched government report showed the unemployment rate plummeted to 6.9% last month from 7.7% in September, but job recovery slowed down as support. Financial decline and daily coronavirus cases increase sharply.
Phil Toews, chief executive and portfolio manager at Toews Corp in New York, said: “Despite a shorter bounce, we’ll see some real challenges in the end. payroll and economy.
“The leading indicators are the number of cases (COVID-19), number of hospitalizations and deaths in the country and that is going in the wrong direction.” At 12:36 p.m. ET, the Dow Jones industrial average was down 0.31% to 28,299.98, the S&P 500 lost 0.16% to 3,504.79 and the Nasdaq Composite was down 0.21% to 11,866, 16.
Major tech players including Apple Inc, Amazon.com Inc, Microsoft Corp and Facebook Inc have fallen after recording strong gains this week and are among the stocks with the biggest drop on the S&P. 500 benchmarks.
Coty Inc grew 15% as the cosmetics maker beat analysts’ estimates for quarterly sales, while T-Mobile US Inc grew 6.1% after adding more phone subscribers than other Analysts are expected in the third quarter.
Electronic Arts Inc slumped 7.8 percent after the video game maker didn’t hit its quarterly revenue estimates.
Decliners outnumber advancers 1.42-1 on the NYSE and 1.59-1 on the Nasdaq.
The S&P index recorded 40 new 52-week highs and made no new lows, while the Nasdaq recorded 168 new highs and 22 new lows.
Report by Medha Singh and Susan Mathew of Bengaluru; Additional reporting by Sagarika Jaisinghani in Bengaluru and Tom Westbrook in Singapore; Edited by Sriraj Kalluvila and Shounak Dasgupta