Since September 1, 2019 in the markets started a meltdown. Since the nineteenth century, the US stock market was not in such a difficult situation. On the morning of 4 September it was discovered that improvement is not worth waiting, because for the first three days of the month, nothing has changed: neither the best nor the worse. However, this entailed a series of indignation among the participants of the market. This situation stems from the fact that stock prices dropped significantly and the only thing you have to do to the American investors - to sell them.
Most of the bidders were plunged into shock, because thirty minutes after the start of the main trading session came the data on industrial PMI from the Institute the ISM released figures were 49.1 per item. We remind that earlier the levels reached 51.1 points, while the decline in forecast is below the critical 50 indicators is the climax of surprise. The last time figures were this low three years ago. Early indicators were at their highs, which was steady at around 60.8 per item.
The end of the last trading session was intense, as investors tried to balance the position in the market and to raise the rate up, however it was not for long. The value of the manufacturing PMI also fell, which led to further market declines. This led to the fact that the indices closed in the red zone with losses of 0.7% for the S&P500 index, and up to 1.1% on NASDAQ.
The certification process of the planes of the 737 MAX was loose, which led to lower stock prices for Boeing , the figures fell by more than -2,66%. Industrial companies in the U.S. especially hard, as each loses about 1.4% of the total capitalization.
However, there are also those of the industry, and that the decline came at the hand is the area of the electricity and utilities sector. The shares of these companies rose 1.1 percent, however, is the only member of growth throughout the U.S. market. Investors saw this as a ray of hope and decided to buy these shares, so as not to fly into the pipe.