S&P 500 lower as U.S. consumer confidence declines
The S&P 500 fell from its recent all-time high on Tuesday, as data from the United States showed that consumer confidence was declining.
Figures from the Conference Board’s survey showed that consumer confidence slipped to 42.8in August, down from 44.1 in July.
Following the release of the report, the CB stated that, “While the resurgence of COVID-19 and inflation concerns have dampened confidence, it is too soon to conclude this decline will result in consumers significantly curtailing their spending in the months ahead”.
Despite this disclaimer, U.S. indices were marginally lower in today’s trading session, whilst Gold prices also rose.
GBPUSD also hit a 10-day high of 1.3807.
European inflation rate hits 10-year high
On Tuesday, it was reported that inflation in the Eurozone climbed to its highest level in over 10-years, which has led to increased pressure on the ECB to adjust its monetary policy.
Data showed that consumer prices within the 19 member nations in the European Union rose to 3% in August.
This was an increase from 2.2% in July, and well above market expectations for 2.7%, which both are substantially over the ECB’s 2% target.
Many believe that inflation will continue rising, however the European Central Bank believes that rates will begin to moderate themselves early next year.
Germany’s DAX 30 finished 0.33% lower on the news.
Zoom stock sinks on revenue warning
Shares in video communications platform Zoom were down by as much as 16% in today’s session, due to the company’s revenue expectations.
After rapidly growing last year during the height of the COVID-19, usage of zoom has gradually declined, resulting in sales only climbing by 54% this quarter, compared to 344% at the same period last year.
Regarding the slowing down of growth, the company’s CFO Kelly Steckelberg stated that, “Most of us are probably socializing in person now, doing fewer things like Zoom Happy Hours, and that’s where we are starting to see some of the challenges”.
As the world continues to move towards a post-pandemic norm, many businesses are asking employees to re-enter the office, which will directly impact activity on platforms such as Zoom.
Zoom stock was down 16.28% as of writing.
Quote of the day – “Bulls make money, bears make money, pigs get slaughtered.”– Unknown