The U.S. stock market always has its ups and down, but the Dow has not been in its best day today. In fact, this index has decreased today. You will find important information in this article about the BoE and the things that this bank is doing to revive England´s economy. We will also talk about what this situation means for the U.S. stock market, as these stock markets influence each other in ways that we might not foresee yet. The two indexes that have been gaining points are the NASDAQ and the FTSE 100 today.
Falling U.S. Government Bonds
The U.S. government bonds fell and the British pound got weaker when the BoE released a stimulus package to revive the economy of Great Britain today. On the other hand, the American stock market underwent a quiet session today, according to some investors. Insurance firms saw their shares decline today where MetLife stock falling 9% after reporting a famous $2 billion charge. Lincoln Financial Group and Prudential Financial shares slid 3.7% and 4.3% respectively after reporting lower fees and premiums. The Dow slid 0.1% and the S&P 500 also slid less than 0.1% today.
Awesome day for NASDAQ
Today was a fantastic day for Nasdaq as the index gained 0.1%. In addition, the important Stoxx Europe 600 followed the trend of gains after the BoE cut its benchmark internet rate from 0.5% to 0.25%. This index rose 0.7% while banks in this index gained 1.3%. The FTSE 100 index rose 1.6 reversing early losses after the important BoE decision, and this exports heavy index loves a weak pound. England’s central bank has cut rates to its lowest level in three centuries, and this cut was just the first since 2009. The bank also plans to cut its interest rates near zero over time.
Dow in the Doldrums
The important Dow index has been just in the doldrums today. This underpins the competitive forces taking place in the marketplace these days. In fact, the Dow has just drifted lower in 8 of the past 9 sessions, and investors should pay close attention to this situation today as well. Though the American economic data has not been stellar, it has been solid anyway these days. Weak corporate earnings are not as bad as many investors expected for this market in the important second quarter.
Holding Pattern
In fact, the American stock market is just stuck in a weird holding pattern. The Dow has just been closing with losses and gains of less than 0.5% just for fifteen sessions one after another. For instance, the longest session stretches since December 2010. Since establishing a record on July 20, the Dow has lost 1.3%, and that´s important for investors to know today. Anyway, many investors think that the markets will stay quiet for the next 3 weeks as well. August tends to be a slow month, as traders love taking vacations during this month.
Jolting the Market
What event could jolt the U.S. market Friday? Of course, the famous July jobs report. The June jobs report made the U.S. stocks rally to records reversing the downward trend that the May jobs report caused in this market. Investors also expect some improvements in the important third quarter with a weak dollar and energy prices stabilized, which could cause an upward trend in corporate profits down the road. Monday started out a journey of a bear market in the U.S. oil price which has dragged down the stocks of energy firms in the S&P 500. These stocks have fallen 0.9% just this week.
As you can see, the U.S. stock market is very resilient and the NASDAQ did an amazing job today. The BoE wants to revive the economy of Great Britain, and investors are watching every move of this bank. In fact, the Bank of England wants to lower its interest rates to historical lows, which might have a disproportionate impact on the performance of the British market over time. The Dow is just in a holding trend, and investors all over the world know it. In fact, the Dow lost 1.3% in July, which is a sign of alarm for a lot of investors out there. Though the Dow is just in doldrums, the NASDAQ is strong. Investors are also expecting the useful and important July jobs report so they can get an idea of the future of the U.S. stock market.

