US Stocks End Lower Amid Trade Tensions and Fiscal Concerns
The US stock market closed in the red on Wednesday, with the Dow Jones Industrial Average declining by 1.9% to 41,860 points, a significant drop compared to the previous trading day. The S&P 500 and the Nasdaq 100 also suffered losses, with the former falling by 1.5% to 5,845 points and the latter by 1.3% to 21,080 points.
The market’s decline was largely attributed to the ongoing trade tensions between the US and China, as well as concerns over the country’s high national debt. The recent downgrade of the US credit rating by Moody’s has left investors waiting for a breakthrough in the budget negotiations led by US President Donald Trump. The US House of Representatives, however, seems to be at an impasse, with the proposed Medicaid cuts being a major point of contention.
Meanwhile, the European common currency, the euro, gained strength, with one euro equivalent to 1.1320 US dollars and one dollar worth 0.8834 euros.
The gold price, on the other hand, saw a significant increase, with one ounce of gold fetching 3,319 US dollars, a 0.9% rise, which translates to 94.28 euros per gram.
The oil market, however, took a hit, with a barrel of Brent crude oil selling for 64.83 US dollars, a 0.8% decrease from the previous day’s close.