Asian equities and U.S. futures and Europe stocks declined on Thursday, August 20, 2020 hurt by the U.S. Federal Reserve’s doubtful view about quick recovery of the U.S. economy, the trade conflict with China, and new clusters of COVID-19 cases.
The market was full of optimism with S&P 500 and the Nasdaq hitting all-time highs driven largely by Apple Inc (NASDAQ: AAPL) until Federal reserve’s comments pointing more on uncertainties over the U.S. recovery.
The recovery path for the U.S. economy from the COVID-19 outbreak remains exceptionally questionable, the Federal Reserve warned, according to meeting minutes released late Wednesday.
In Europe, the latest European Central Bank monetary policy meeting is due to be published later on Thursday and will be studied for clues on the central bank’s thinking going forward.
Oil prices have fallen as well amid cautious recovery in demand.
iPhone shares rose 1.4% to make the first publicly listed U.S. company who reached $2 trillion in market capitalization. Apple opened up to the world in December 1980 at $22 per share, bringing its market top rapidly up to almost $2B. After twenty-six years, it reached a market cap of $100B in May 2007, only a month prior to the introduction of the iPhone (the iPod turned out in 2001). In May 2010, Apple overtook Microsoft (NASDAQ: MSFT) as the most valuable organization. In 2012, its market cap dashed from $400B in January to $600B in April. What's more, it turned into the first U.S. organization to accomplish a $1T valuation in August 2018 (PetroChina hit that market top in 2007). Apple would be the tenth biggest stock trade on the planet.
Market participants will watch the following closely:
- Results from Alibaba Group Holding Ltd. are due on Thursday.
- U.S. jobless claims for the week ended Aug 15 are due on Thursday.
- Euro-area PMIs will be released on Friday.