U.S. Indices sell off on Tuesday
“What goes up, must come down” After Monday’s record breaking day, the NASDAQ dropped, as some sell offs within the tech heavy index took place.
After reaching a peak of 11,080 yesterday, which created a record high, the index fell to a low of 10,369 today.
This comes as markets fear a recent surge in COVID-19 cases, which have created business restrictions, particularly in Florida and California, two of the most impacted states.
As a result, intraday trading today saw the NASDAQ drop close to 6% from its record high on Monday.
UK GDP Growth Comes in less than Expected
Today, it was reported that the British economy has begun to bounce back from COVID-19 crisis, however not at the pace most expected.
GDP data showed that in May, the economy grew by just 1.8% from the previous month, as the gradual easing of lockdowns saw some sectors moving back to work.
Overall the UK economy is still 24.5% smaller than it was before the pandemic.
Sterling fell against USD to an intraday low of 1.247.
JP Morgan kicks off earning season
America’s largest bank reported its Q2 earnings, however the bank surprised some by delivering stronger-than-expected results in the midst of the pandemic.
Although net income fell by 51%, the main takeaway was revenue coming in at $33.83 billion vs $30.57 billion expected.
Quote of the day: “We want to perceive ourselves as winners, but successful traders are always focusing on their losses.” – Peter Borish
EURGBP: More action in GBP pairs today. EURGBP has continued yesterday’s rally by climbing from 0.894 to 0.911.
NDX (Futures): The NASDAQ looked as though it is set for a downwards cross of the 10 and 25 day moving averages. Markets dropped to a day low of 10,369 on Tuesday.