The end was ugly: the Dow fell 540 points, the Nasdaq closed down 2%

By RockedBuzz 24 Min Read

It ended up being a big minus

The mood in America did not improve even before the market closed, the gains during the day quickly melted away in the evening, investors are depressed by tomorrow’s US labor market data.

The Dow Jones eventually fell 543 points, the S&P 500 lost 1.85% and the Nasdaq fell 2.05%.

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It’s getting uglier

The American stock markets look increasingly ugly, the Dow Jones is already down 475 points, but the S&p 500 and the Nasdaq are also falling, the former by 1.63%, the latter by 1.77%.

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The Dow falls nearly 300 points

The mood overseas is getting worse and worse, the Dow Jones is already down nearly 300 points, and the Nasdaq and S&P 500 are down more than 1%.

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It started well, then the mood in America soured

At the opening of the stock market, the main American stock indexes started with a gain, but now the positive mood has disappeared, and investors are waiting with bated breath for tomorrow’s labor market data.

The Dow, the S&p and the Nasdaq are currently down around 0.3-0.4%.

evolution of the baha us 30 exchange rate

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Lower and lower

In the afternoon, the mood on the Hungarian stock market worsens, the BUX index, with its 1.4 percent fall, is already the absolute driving force among the continent’s stock exchanges.

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The exchange rates of all four domestic blue chips are falling, the largest minus can be seen at OTP, with the 1.6 percent drop, the exchange rate has already crossed the psychologically extremely important HUF 10,000 mark. Tomorrow morning, OTP will publish its fourth quarter quick report: numerous one-off items and rising provisioning may put the bank’s results under pressure, at least these trends are also visible in last year’s fourth quarter figures based on expectations.


A smaller fall may come in America

Several events can move the American stock markets today, yesterday’s speech by the president of the central bank can overshadow the mood from one side, as Jerome Powell said that the central bank can count on a higher interest rate increase than previously expected. Meanwhile, the latest data based on the data, the number of people applying for aid increased slightly more than expected, this is considered an important labor market indicator, after the presentation of the data we saw a small jump in the futures indices.

However, the really important event will come tomorrow, which is why investors can even wait today: the US employment data for February will arrive, i.e. it will finally be clear whether the amazing increase in employment in January was just a one-time derailment in the slowdown of the labor market. The announcement a month ago thoroughly upset the markets, brought about a strengthening of the dollar and an increase in bond yields, as the market priced in a stricter interest rate policy from the Fed as a result. The central bank is therefore closely monitoring labor market processes, and another shocking number could even bring about a serious reversal in the stock market and a strengthening of the dollar.


The Hungarian stock market is underperforming

The mood on the continent’s stock exchanges is not the best, the Hungarian stock exchange is also among the leaders in this environment with its nearly 1 percent fall.

The Economic Year Opening event of the Hungarian Chamber of Commerce and Industry is currently underway, at which Viktor Orbán also spoke. will build a high-performance gas power plant to support investment-led industrial expansion in the region. Orbán also underlined that Hungary will not give up on Russian energy, and confirmed that there is now an economic policy dispute between the MNB and the government, and made it clear that if the horses diverge, “the cart will end up in the ditch”.

The government information will also begin shortly, where, among other things, the 2024 budget draft and the inflationary environment, but also the issue of the introduction and maintenance of sectoral special taxes can be discussed, and investors will also pay special attention to this.

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The mood is bad on the continent’s stock markets

Europe’s leading stock markets start trading in the negative range, with the DAX down 0.2 percent, the FTSE 100 down 0.4 percent, and the CAC down 0.3 percent, but the Milan and Spanish stock markets also fell after the opening.


Paging is possible in Europe

What are the current events on the stock exchanges?

  • The leading US stock indexes closed mixed yesterday, the Dow Jones ended the day down 0.2 percent, the S&P 500 ended the day up 0.1 percent, while the Nasdaq rose 0.5 percent.
  • Asian stock markets are showing a bullish mood this morning, the Nikkei is down 0.97 percent, the Hang Seng is up 0.17 percent, while the CSI 300 is up 2.56 percent.
  • The day can start with a search for direction on the European stock exchanges, based on the current state of the future stock indices, the DAX may fall by 0.68 percent, the CAC may rise by 0.09 percent, while the FTSE may open with a loss of 0.45 percent.
  • A mixed opening is expected on the American stock exchanges based on the current position of the future stock indices. The Dow Jones may open 0.2 percent higher, the S&P 500 may drop 0.13 percent, while the Nasdaq may drop 0.58 percent.

What can be expected on the macro front?

Today we turn our attention to Asia, with inflation data from China and the fourth quarter performance of Japan’s economy. We do not expect any important data to be released here, but this does not mean that the day will be uneventful, for example, Gergely Gulyás will hold a government briefing at noon.

March 6 – March 12, 2023. Macro calendar
Hungarian macroeconomics
March6.Monday8:30 a.mKSHRetail tradeJan.
March7.Tuesday8:30 a.mMNBInternational reservesFeb.
March7.Tuesday8:30 a.mMNBSecurities statisticsJan.
March7.Tuesday8:30 a.mKSHIndustry (first estimate)Jan.
March7.Tuesday11:30 a.mAKK3-month dkj auction
March8.Wednesday8:30 a.mKSHInflationFeb.
March8.Wednesday11:00 a.mPMPreliminary VATFeb.
March10.Friday8:30 a.mKSHForeign tradeJan.
International macroeconomics
March6.Monday11:00 a.mEURetail tradeJan.
March7.Tuesday8:00 a.mGerman.Factory ordersJan.
March7.Tuesday4:00 p.mUSASpeech by Jerome Powell (Fed).
March8.Wednesday8:00 a.mGerman.Industrial productionJan.
March8.Wednesday8:00 a.mGerman.Retail tradeJan.
March8.Wednesday11:00 a.mEUGDP (revised)Q4
March8.Wednesday2:15 p.mUSAADP unemploymentFeb.
March8.Wednesday2:30 p.mUSAForeign tradeJan.
March8.Wednesday19:00USAFed’s beige book
March9.Thursday2:30 amChinaInflationFeb.
March10.FridayJapanBoJ interest rate decision
March10.Friday8:00 a.mUKGDPJan.
March10.Friday8:00 a.mGerman.Inflation (second estimate)Feb.
March10.Friday2:30 p.mUSAUnemploymentFeb.
March10.Friday4:00 p.mUSAMichigan indexMar.
Source: Portfolio collection

What has happened on the stock markets so far?

  • Among the leading American, Asian, European and regional stock indices this year, the FTSE MIB index is at the top with a 17.7 percent shift, while the BUX index is the driving force with a 1.4 percent drop.
  • Magyar Telekom’s share performed the best among domestic blue chips this year with a 15.8 percent increase, while Richter’s stock is at the bottom of the list with a 9.5 percent drop.
  • Among the most important raw materials, the price of Gold has already risen by 0.3 percent since the beginning of the year.
More important instruments
Exchange rateOne day1 week1 monthThis year1 year5 years
US stock indices
Dow Jones32,798.4-0.2%0.4%-3.4%-1.1%0.5%31.7%
S&P 5003,992.010.1%1.0%-3.1%4.0%-4.3%45.7%
Asian stock indices
Hang Seng20,051.25-2.4%-2.8%-5.8%1.4%-3.4%-34.6%
CSI 3004,034.11-0.4%-2.2%-1.0%4.2%-5.4%-1.1%
European stock indices
FTSE MIB27,911.520.5%2.2%2.8%17.7%25.0%22.8%
Regional stock indices
BUX43 161.43-0.5%-3.3%-5.9%-1.4%4.0%11.6%
Hungarian blue chips
OTP10 150-0.9%-5.5%-7.2%0.4%-7.7%-11.2%
Magyar Telekom392.50.4%0.1%5.8%15.8%-2.5%-11.5%
Raw materials
Foreign currencies
Government papers
10-year US Treasury yield3.980.2%-0.5%9.6%3.9%112.6%38.8%
10-year German government bond yield2.64-1.9%-2.8%13.5%3.1%3,903.0%316.7%
10-year Hungarian government bond yield8.892.1%1.3%9.3%-3.9%50.9%219.8%
Source: Refinitiv, Portfolio

Cover image source: Getty Images

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