Categories: Invest

Dow Jones, the S&P 500, and Nasdaq weakened amid concerns around tax hikes and possible shifts in the U.S. Federal Reserve’s politics

Wall Street’s three main indexes ended sharply lower on Friday as investors have started to behave nervously amid concerns around tax hikes and possible shifts in the U.S. Federal Reserve’s timeline for tapering asset purchases. Democrats want to raise the tax rate on corporations to 26.5% from the current 21%, and a potential increase in corporate taxes would also negatively influence stock markets.

 The battle against the coronavirus is still not over, and investors are also concerned that the Delta variant of the coronavirus could slow the U.S. economy. Another negative news is that some Fed officials warned it is nearly time for the central bank to begin pulling back on its monetary support, including the tapering of its asset purchases.


Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

“The market is struggling with prospects for tighter fiscal policy due to tax increases and tighter monetary policy due to Fed tapering. Inflation is likely to be a major issue next week when the Federal Open Markets Committee holds its two-day monetary policy meeting,” said David Carter, chief investment officer at Lenox Wealth Advisors in New York.

Several Fed officials expect hikes sooner than previously anticipated because inflation accelerated above acceptable levels, and investors will continue to pay attention to the bank’s commentary looking for any clues. The Dow Jones, the S&P 500, and the Nasdaq weakened on a weekly basis, and the risk aversion will probably continue in the upcoming weeks.

S&P 500 weakened by -0.91% on Friday

S&P 500 SPX weakened by -0.91% on Friday and closed the week at 4,432 points.

Data source: tradingview.com

If the price falls below 4,300 points, it would be a firm “sell” signal, and we have the open way to 4,200 or even 4,000 points. The upside potential remains limited for the week ahead, but if the price jumps above 4,500 points, the next target could be around 4,600 points.

DJIA weakened by -0.48% on Friday

The Dow Jones Industrial Average DJIA weakened by -0.48% on Friday and closed the week at 34,584 points.

Data source: tradingview.com

Dow Jones weakened from its recent highs, and if the price falls below the strong support level that stands at 34,000 points, it would be a firm “sell” signal. The current resistance level stands around 35,000 points, and if the price jumps above this level, the next target could be around 35,200 points.

Nasdaq Composite weakened by -0.91% on Friday

The Nasdaq Composite (COMP) weakened by -0.91% on Friday and closed the week at 15,043 points.

Data source: tradingview.com

The current support level stands around 15,000 points, and if the price falls below this level, it would be a “sell” signal, and we have the open way to 14,800 points.

Summary

Dow Jones, the S&P 500, and Nasdaq weakened last week amid concerns around tax hikes and possible shifts in the U.S. Federal Reserve’s politics. The upside potential remains limited for the week ahead, and the risk aversion will probably continue in the upcoming weeks.

Where to buy right now

To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:

  1. Etoro, trusted by over 13m users worldwide. Register here >
  2. Capital.com, simple, easy to use and regulated. Register here >
admin

Share
Published by
admin

Recent Posts

Is there a way for the crypto sector to avoid Bitcoin’s halving-related bear markets?

There is good reason to be afraid. Previous down markets have seen declines in excess…

2 years ago

UPS and FedEx are good dividend stocks, but which should you take?

United Parcel Service, Inc. (NYSE:UPS) and FedEx Corporation (NYSE:FDX) are two robust logistics companies. Both…

2 years ago

Bitfarms sold 3K Bitcoin as part of strategy to improve liquidity and pay debts

Canadian crypto mining firm Bitfarms sold roughly $62 million worth of Bitcoin (BTC) in June,…

2 years ago

This biotech stock is up 100% on Tuesday: here’s the catalyst

Invezz does not provide financial advice. Our aim is to simplify information about investing, enabling…

2 years ago

Japanese film studio announces the production of a series based on crypto

Noma, a Japanese film studio, has announced that it is producing three feature films that…

2 years ago

Bitcoin price taps 5-day highs as Shiba Inu leads altcoin gains

Bitcoin (BTC) saw continued strength on June 21 as Wall Street trading opened with a…

2 years ago