The dollar rose on Thursday as the equities swooned with the S&P 500 losing 188.04 points to close at 3,002.10 while the Dow lost 6.90%, ending at 25,128.17 and the Nasdaq shed 5.27% to 9,492.73. These movements are viewed as profit-taking by investors, according to FXStreet’s analyst Joseph Trevisani.
Read S&P 500: 98% of stocks above the medium-term ma, correction phase – Credit Suisse
Key quotes
“There was more calculation than fear in the currency markets as traders capitalized on events to cash in on three weeks of dollar losses that had removed the last of the risk premium from the March and April panic.”
“Stocks succumbed to concerns that small increases in hospitalizations in Texas and elsewhere could be the forerunner of a general return of the coronavirus in reopened states and could force another general economic closure.”
“Virus fears were not the main story for equities. Stock averages were ripe for profit-taking. The S&P 500 to Monday’s close had gained 44% in the ten weeks. The Thursday plunge took the average exactly to the 23.6% first Fibonacci level of the March 23 to June 8 rally while the Dow had climbed 48% over the same period and its plummet on Thursday brought it back to 35% above the March 23 bottom and 9% below the June 8 high. The Nasdaq had reached its all-time on Wednesday finishing at 10,020.35 46% over the same March 23 low and the fall brought it to 38% above the spring low and 8% from Wednesday’s top.”
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