Even so, traders were not shifting funds into traditional safe-haven assets like USA government bonds and precious metals, a sign that the sell-off was not necessarily a reaction to jitters about the economy. NFP data due later today at 1:30 PM BST. What is quite important is that the USA unemployment rate is expected to fall in single-digit territory, the forecast is for 9.8% while the previous reading was 10.2%. However, London, Paris and Frankfurt edged up in morning trade after Thursday's plunge. Shanghai and Taipei were both off 0.9 percent off. The Russell 2000 likely more closely resembles your stock portfolio if you own an index fund, and it was only down around 3%.
Declining issues outnumbered advancers for a 2.26-to-1 ratio on the NYSE and for a 2.76-to-1 ratio on the Nasdaq.
US equity markets clawed higher Friday, overpowering a selloff in Big Tech amid signs of continuing, if slower, labor market growth. US markets will be closed Monday for Labor Day. Another slide in technology stocks, which led the selling a day earlier, outweighed gains in financial, industrial companies and elsewhere in the market.
On Thursday, U.S. stocks fell sharply in their worst showing since June.
All the 11 primary S&P 500 sectors dipped, with technology down 5.8 per cent, the worst-performing group. 61% of the shares traded above their 200-day moving average yesterday.
The Dow Jones futures are trading higher by 68 points.
TSLA is the most shorted stock across the USA stock market, with short interest now at $26.88 billion as of Thursday, according to financial analytics firm S3 Partners. With trading suddenly volatile and investors anxious, no one will want to stay long until in equities after the rapidity of Thursday's sell-off. The benchmark S&P 500 and Dow have surged about 60% from their troughs.
It would take a big downward move in the price of volatility futures to narrow that gap, something that is unlikely to happen with market anxiety high as the election approaches, Frederick said. Shares would be in a bear market at $398.66 or lower. While the pandemic keeps the uncertainty at a high level, investors are not overly anxious about the increase in COVID-19 cases, as governments and central banks worldwide have taken decisive measures.
S&P 500 futures declined 0.5%, suggesting US stocks were likely to come under less pressure on Friday than in the previous session. The Big Tech stocks have made massive gains this year. Nvidia, Qorvo and Advanced Micro Devices fell 8% or more. Even with this week's pullback, technology is up 27% this year, well ahead of the S&P 500's 10 other sectors.
The broader All Ordinaries index (^AORD) also opened 2.49 per cent lower to 6,144.0 points. It was the biggest one-day decline since June 11. Carnival Corp. rose 5.2%, Norwegian Cruise Line rose 3.8%, and Royal Caribbean climbed 2.7%.