US equities moved lower despite stimulus hopes

Source: Dukascopy Bank SA

US equities dropped on Monday amid increased cautiousness in the market ahead of the German Constitutional Court decision on whether to suspend the ESM. Recent pessimistic data releases from the US and China also added pressure on the US stocks. Even speculation that the Fed and POBC will loosen their monetary policies failed to buoy US shares. The S&P 500 Index lost 0.62% to end Monday's session at 1,429.08. Only one sector within the index managed to climb. Telecommunications sector gained 0.45%, with Frontier Communications and Sprint Nextel rising 1.76% and 2.39%. Sprint Nextel surged on news that the company's revamp will cut costs. At the same time, technology and financial shares dragged the US stock index lower. Apple and Dell fell 2.60% and 0.28% while Comerica and Fifth Third Bancop dropped 1.64% and 0.78%.  Meanwhile, American International Group lost 2.03% after the government announced that it was selling the company's shares, thus cutting the government's holdings below the majority stake for the first time since 2008.

 

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