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The stock market cut losses on Friday morning and indices were mixed as another massive sell-off of Chinese equities spilled over into global markets.
X
The Nasdaq composite fell 0.7% at the opening but narrowed its loss to 0.4%. The S&P 500 erased the losses and remained stable. Both indices held above their 50-day moving averages, a positive sign.
The Dow Jones Industrial Average rose 0.1% as Salesforce.com (CRM) added more than 2%. It is in the buy range of Thursday’s breakout at 275.32-289.09. Mcdonalds (MCD) tries to get out of base on base with a buy point of 247.15.
Small caps lagged behind as the Russell 2000 fell 0.5%.
Volume was higher on the Nasdaq and lower on the NYSE compared to the same time Thursday. Falling stocks outnumbered advances by a 7-4 ratio on the Nasdaq and 11-10 on the NYSE.
China bans Bitcoin
New shockwaves emerged from China, where authorities banned all cryptocurrency transactions as China Evergrande Group teetered on collapse.
The Hang Seng in Hong Kong fell 1.3%, the Shanghai composite lost 0.8%, but the Tokyo Nikkei rose 2.1%.
Snapshot of the US Stock Market Today |
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|---|---|---|---|---|
| Index | symbol | Price | Loss of profit | % Switch |
| Dow jones | (0DJIA) | 34799.32 | +34.50 | +0.10 |
| S&P 500 | (0S & P5) | 4451.35 | +2.37 | +0.05 |
| Nasdaq | (0NDQC ) | 14997.70 | -54.54 | -0.36 |
| Russel 2000 | (IWM) | 223.83 | -0.98 | -0.44 |
| MICI 50 | (FFTY) | 51.56 | -0.78 | -1.49 |
Last updated: 10:28 AM ET 9/24/2021 |
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IShares China Big Cap ETF (FXI) was down 2.1%. Emerging market ETFs fell around 1%.
The Central Bank of China Bitcoin banned and all other cryptocurrency transactions. Officials said the move was taken to further limit the risks of crypto trading and for the sake of security and social stability.
Bitcoin fell 5.5% to $ 41,600, according to Counter. Grayscale Bitcoin Trust (GBTC), a fund that tracks Bitcoin prices, fell almost 6%. ETF Blockchain GlobalX (BKCH) lost almost 5%.
Meanwhile, the Evergrande group appeared to miss an $ 83.5 million bond payment, keeping the creditors of the real estate company on the lookout. The indebted company is facing a default and Chinese authorities should not intervene with a bailout. Investors around the world fear a collapse could hit global markets, although reports indicate Beijing is taking action to contain the damage.
European stock markets falling
The London FTSE 100 fell 0.2% and the German DAX lost 0.7%, the Paris CAC 40 fell 0.9%.
Innovative ETF IBD 50 (FFTY) plunged 1.6%. Outdoor Deckers (PLATFORM) slipped 6%, landing at a current pattern low. The stock is more than 7% below 444.58 buy point, a sell signal for all investors who bought during this brief breakout.
Most shoe stocks fell due to Nike (NKE), which fell by more than 6% in heavy volume. Nike missed quarterly sales expectations and cut forecast for the current quarter and full year due to supply chain issues.
Nike is on track for its worst day since June 26, 2020, when it fell 7.6%, according to Dow Jones Market Data. The apparel and sports equipment maker is the worst performing stock on the Dow Jones and S&P 500 today.
Cloudflare (REPORT) fell more than 4%, but the stock remained in an uptrend. The stock found support at its 10-week line last week.
While most IBD 50 stocks were down, there was no sell signal on the index except for Deckers.
Juan Carlos Arancibia is IBD’s Markets Editor and oversees our market coverage. Follow him on @IBD_jarancibia
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