Monday saw the US markets closed for the Memorial Day holiday. Trading resumed on Tuesday.
Tuesday saw US markets open and head southwards. Economic news pointed to a reduction in consumer spending and the markets reacted as expected. Whilst the Nasdaq hit low levels, some of the losses were pulled back by the end of trading, leaving the 100 index down by just short of 1%. The Dow Jones fared slightly worse and fell just over 1%. The Index of Investor Optimism gained slightly in May but expectations for returns on their investments fell. Almost 85% of investors said the controversy over accounting practices was hitting investor confidence. May’s consumer confidence figures rose by not by the level expected.
Wednesday saw red with both indices closing down for the day. The Nasdaq 100 fell just over 2% whilst the Dow Jones Industrial Average fared better with losses of just over 0.5%. Technology stocks took the hardest battering and the markets were not helped by stock downgrades.
Thursday was a better day for technology stocks in the US but the blue chips continued the downward slide. However, the Dow Jones managed to save face and only slightly fell below its starting level. The Nasdaq 100 broke its losing streak and ended the day up by almost 1%.
Friday saw a whole host of economic news releases that kept the Dow Jones Industrial Average around its staring level, despite shooting higher early in trade. No such luck for the Nasdaq 100 though, falling just over 1.5%. The economic data released was positive. The Chicago Purchasing Managers index had its highest reading in 3 years, with new orders up to levels not seen since 1995. The University of Michigan’s consumer index also posted positive results, as did the factory orders. Investors took the news positively, taking heart that the US economy is expanding.