US stock market driven down by the Fed’s pessimistic outlook
US stocks are headed for a slight downturn on May 13. Investors are anticipating another pessimism-inducing report on unemployment and are already upset with the latest statement of Fed’s Chairman.
By 11:30 GMT S&P 500 lost 0.4% - 12 points. Nasdaq dropped 0.4% - 36 points. Dow lost 0.6% - 127 points.
The initial jobless claims data is scheduled to be published soon. It is expected, that it will show 2.5 million new claims. Last week’s report showed 3.17 million new claims. To sum up, it means that more than 35 millions turned to welfare after the beginning of the pandemic.
The mood on the markets was soured further by the statement of Jerome Powell - the Chairman of the Federal Reserve. He claims, that the United States are headed for the worst recession in post-war history.
In corporate news, Uber is still pursuing its acquisition of GrubHub. The delivery service’s stock continues to grow. GrubHub refused the initial price.
The chip equipment manufacturer Applied Materials is going publish its earnings report after the end of the session. Its EPS is expected to come at 94 cents and a revenue of around US$4.1 billion.