The main US stock indices fell noticeably. Pressure on the market provided sales in the technological segment and conglomerate sector, while some support was provided by the market from the growth of shares of banks, as well as securities of the energy sector.
In addition, investors reacted to the message that the confidence of consumers unexpectedly improved. The Conference Board said that the consumer confidence index rose to 118.9 in June. It was expected to decline to 116 from 117.6 in May. The index of the current situation increased by 5.3 points to 146.3, while the index of expectations fell by 1.7, to 100.6. At the same time, the S & P / Case-Shiller report showed that prices for single-family homes in the US accelerated at a slower pace than expected in April. According to the report, the composite index for 20 megacities rose in April at 5.7% per annum after an increase of 5.9% in March. The growth was forecasted at 5.9%.
Attention of market participants was also attracted by reports that the IMF worsened the outlook for the US economy due to doubts about the effectiveness of measures promised by Tramp to reduce taxes and increase spending on infrastructure. The IMF expects US GDP growth by 2.1% in 2018 against the previous forecast of + 2.5%, and predicts a slowdown in growth to 1.7% in the next 5 years. The IMF also believes that the US dollar rate is 10% -20% higher than the level justified in terms of economic fundamentals. In addition, the IMF said that the Fed should continue to raise interest rates “depending on the incoming data.”
Most components of the DOW index finished trading in the red (22 of 30). Most fell shares of Verizon Communications Inc. (VZ, -1.76%). Leader of the growth were JPMorgan Chase & Co. shares. (JPM, + 1.18%).
Most sectors of the S & P index showed a decline. The conglomerate sector fell most of all (-2.0%). The leader of growth was the financial sector (+ 0.3%).
DJIA -0.45% 21.313.54 -96.01
Nasdaq -1.61% 6,146.62 -100.53
S & P -0.80% 2.419.45 -19.62