• Home
  • Analytics
  • Market News
  • Major US stock indexes finished trading in the red

Market news

1 May 2019

Major US stock indexes finished trading in the red

Major US stock indexes fell moderately, the reason for which was the outcome of the Fed meeting. At the same time, the market was supported by Apple's quarterly results (AAPL) and ADP employment report, which leveled out disappointing data on activity in the manufacturing sector from ISM, as well as the fall in oil prices after the publication of weekly statistics on changes in oil reserves in the US.

The Fed leaders decided to keep the federal funds rate in the range of 2.25% -2.5%, indicating that in the first quarter some key indicators of economic activity slowed down. The executives also noted that core inflation is below the Fed's target level of 2%, which could be a worrying situation if it persists. Leaders expressed satisfaction with their waiting policy, which was held before this week’s meeting. They did not give up their earlier promise to remain patient with regard to future adjustments to the federal funds rate in the coming months.

Apple shares rose 5.60% after the company announced quarterly results that exceeded expectations. The tech giant's revenue forecast for the next quarter also turned out to be better than expected. The company also announced a new stock repurchase program of $ 75 billion and increased dividends by 5%.

A report submitted by ADP showed that employment in the US private sector jumped in April much more than expected. According to the report, employment in the private sector increased by 275,000 jobs in April, after rising by 151,000 jobs in March. Economists had expected employment to increase by about 180,000 jobs, compared with the addition of 129,000 jobs originally reported in the previous month.

Data from the Institute of Supply Management (ISM) indicated that in April, activity in the US manufacturing sector had deteriorated markedly, and was lower than economists' forecasts. The PMI index for the manufacturing sector fell in April to 52.8 points from 55.3 points in March. The latter value was the lowest since November 2016. Analysts had expected the indicator to drop to only 55.0 points.

Most of the components of DOW finished trading in the red (24 out of 30). The outsider was DowDuPont Inc. (DWDP; -2.68%). The leader of growth were shares of Apple Inc. (AAPL; + 5.60%).

Almost all sectors of the S & P recorded a decline. The largest decline was in the raw materials sector (-1.4%). Only the consumer goods sector grew (+ 0.3%).

At the time of closing:

Dow 26,430.14 -162.77 -0.61%

S & P 500 2,923.73 -22.10 -0.75%

Nasdaq 100 8,049.64 -45.75 -0.57%

Open Forex Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
37 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.55% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2020 TeleTrade-DJ International Consulting Ltd

TeleTrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. TeleTrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies. You may change your cookie consent or view our cookie declaration here.

TeleTrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.55% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.