US markets close mixed erasing earlier gains

Wednesday, 06. May 2020 22:04

After starting in the green on the news of gradual business reopening as the coronavirus restrictions ease, the stock markets in the United States closed mixed on Wednesday, as investors digested the data on a large drop in US payrolls as a result of the pandemic.

The ADP National Employment Report released on Wednesday showed that the number of jobs in the private sector in the US dropped by 20.2 million in April, with the biggest impact recorded in the service sector. In addition, the figure does not reflect the full impact of COVID-19 job losses as it uses data through the 12th of the month. Also, White House economic adviser Kevin Hassett warned that the US gross domestic product (GDP) could sink 40% in the second quarter of the year, while Federal Reserve Bank of St. Louis President James Bullard said that the unemployment rate could hit 20% or go even higher.

The Dow lost 0.91% at the closing, as Dow Inc dropped by 4.23%. The S&P 500 ended 0.70% lower, with Occidental Petroleum Corp plunging 12.53%. Meanwhile, the Nasdaq 100 added 0.61% as the session ended, as MercadoLibre surged 19.64%.

The euro lost 0.43% compared to the dollar to sell for $1.07921 at 4:05 pm ET.

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Breaking the News / SR