âŽUS100 fell 3.8% amid worsening macroeconomic outlook. Tesla removed from S&P 500 ESG index
Major Wall Street fell sharply on Wednesday as gloomy macroeconomic outlook coupled with weak quarterly results from major US retailers continue to weigh on market sentiment. Today's data from the housing market showed signs of cooling as inflation remains near a 40-year high, mortgage rates jumped to 12-year highs, building material costs remain elevated, and supply constraints persist. Stocks of Costco, Target and Walmart fell sharply as their profits have been hurt but inflation and companies expect that this situation may persist in the next quarters. Due to these reasons S&P Global now expects US growth to decline 80 basis points to 2.4%. Also news that S&P Dow Jones Indices removed Tesla from its S&P500 ESG index due to concerns how the electric carmaker is handling autopilot crashes, put additional pressure on the tech sector. Â
US100 pulled back sharply after buyers failed to break above local resistance at 12535 pts. If current sentiment prevails downward move may be extended to the psychological support at 12000 pts or even 11700 handle were recent lows are located. Source: xStation5
