US closes lower on prospects of Fed tapering

Thursday, 26. August 2021 22:02

United States major equity markets closed lower on Thursday ahead of the anticipated Jackson Hole symposium that Federal Reserve will hold virtually on Friday. Fed officials George and Kaplan spoke in favor of tapering asset purchasing since businesses and consumers have adapted to the pandemic conditions. Fed's Bullard also noted that the bond-buying program is currently doing more damage and risks creating financial market bubbles.

Traders were also reacting to the terrorist attacks in Kabul as Afghanistan events were adding to the risk-off sentiment. Meanwhile, fresh data reports showed less-than-expected progress with US GDP growing by 6.6% in the second quarter of the year. Additionally, jobless claims increased by 4,000 from the previous week, still keeping the unemployment rate lowest since March 2020.

The Dow closed with 0.54% in the red as Boeing slid by 2.05%, while the S&P 500 lost 0.58% and the Nasdaq 100 fell by 0.59%, both led by Dollar Tree plummeting by 12.08%. The euro declined by 0.17% against the dollar exchanging hands for $1.17512 at 3:56 pm ET.

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Breaking the News / LH