Two reasons why Nasdaq Composite Index (INDEXNASDAQ: .IXIC) could go below 10K points – Idaho Reporter

IndexNasdaq IXIC

Two reasons why Nasdaq Composite Index (INDEXNASDAQ: .IXIC) could go below 10K points

After the recent price slump in the middle of the week, the U.S. stock markets recorded a moderate recovery on Thursday. Nasdaq Composite (INDEXNASDAQ: .IXIC) gained only 39 points so we cannot call this a recovery.

Furthermore there are 2 reasons why Nasdaq Composite could go below 10.000 points again.

  • The latest fears about the state of the US economy have receded somewhat, the market said. Analyst Jochen Stanzl from CMC Markets believes that the US economic stimulus package will probably not do anything this year.
  • “And there is also the certainty that a vaccine will take longer than the second wave of infections.”

The Dow Jones Industrial exceeded the 27,000 point mark in the course of trading on Thursday, but fell back noticeably and closed with an increase of 0.20 percent at 26,015.61 points.

On Wednesday, the Dow had fallen by almost 2 percent. The market-wide S&P 500 (INDEXSP: .INX) rose on Thursday by 0.30 percent to 3246.59 points, but this is the number we saw back in July.

The tech-heavy Nasdaq 100 gained 0.58 percent to 10,896.47 points after falling more than 3 percent the day before.

Goldman Sachs stocks were among the stocks the front-runner in the Dow, up 4.8 percent. The major Swiss bank UBS had previously upgraded the investment bank’s securities from “Neutral” to “Buy” and raised the price target from $220 to $245. Goldman achieved solid results in the current difficult environment, wrote analyst Brennan Hawken and raised its earnings forecast (EPS) for the years 2020 and 2021. At the lower end of the benchmark index were the shares of Boeing with a price decline of 3.4 percent.

The Tesla (TSLA) shares rallied after a significantly weaker opening and gained almost 2 percent. Recently, company boss Elon Musk had disappointed hopes for a breakthrough in battery technology. The company is also struggling with technical problems with the Tesla app, which connects customers to their cars.

The titles of the potential Tesla competitor Nikola sagged by a further 9.7 percent. Since the record high in June, they have now lost around 80 percent of their value. Founder and CEO Trevor Milton resigned after allegations of fraud rose and the authorities opened an investigation. Now the financial services and investment company Wedbush Securities has downgraded the stock.

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