Market players will watch very important tech news today: Tesla and Apple are splitting their shares on Monday 31.08.2020 in order to stay affordable for everyone, as share prices soared. Tesla and Apple split Monday after reaching the new record highs. Amazon (AMZN), Facebook (FB), and Alphabet (GOOG, GOOGL), closed at record levels in a pretty much the same pattern.
The S&P 500 index continues rising for its 9th week non-stop, setting five straight record closes. Dow Jones has regained all of the losses it suffered in 2020 and is 1,000 points away from its February record.
Meanwhile, Walmart and Microsoft opened lower as China tried to prevent a rather hasty TikTok deal, introducing new restrictions on the export of artificial intelligence software. Complicating the United States plans to buy TikTok. Walmart dropped by 2.5% after it rose sharply previously. This behavior was affected by news that it is going to buy TikTok’s U.S assets in partnership with Microsoft.
Oil Production has gone down by more than one million BPD. Even after lockdowns calmed the demand, it stayed low, recovering slightly and gradually. The S&P 500 energy sector is down as much as 40% this year. Even though the U.S stock market touched the new highs.
Looking at the stocks market, it opened near-record high again on Monday 31.08.2020 ending August in a significant, 5-month gain consecutively. Massive monetary stimulus has boosted the stock market last month. Fed Chair Jerome Powel supported stock markets by promising to keep inflation near 2%, allowing prices to grow to balance them during undershooting, as the Fed fears higher inflation.
This week will be a test week for U.S economy recovery. The situation can be described as gloomy expectations accompanied by growing numbers of CoronaVirus cases and unemployment still elevated. The market participants will watch U.S. nonfarm payrolls closely to understand the U.S labor market, reminding everyone that in March and April, non-farm payrolls collapsed by 22.1 million, only 9.28 million got back to work which means a staggering number of 42% lost their job.