Stocks Fall As Dollar Strength Worries Investors

The stock market suffered an unexpected blip on Thursday after the announcement of a heavy fall in durable goods orders in August.

Late morning, the Dow Jones lost 1.2% to 17,004.6 points, while the Nasdaq Composite fell 1.7% to 4479.7 points.

Data plummeted 18.2% in orders for durable goods in the United States last month, their biggest decline on record since 1992. Analysts point out that this unusual fall follows a record increase of 22.5% in July and that outside transport, statistics shows a small increase of 0.7%, investors seem unsettled by the mixed signals being sent by the American economy.

The decline in Wall Street sent European shares lower, with the CAC 40 losing 1.32% and Eurofirst 300 fell by 0.92% to its lowest level since late August.

Investors must also reckon with geopolitical tensions and strikes by the United States and its allies against places controlled by Islamist militants in Syria, some websites petroleum.

The strong dollar is also beginning to worry some investors. The greenback was further strengthened by about 0.2% on the day against a basket of currencies to reach a high of four years, and up nearly 7% since the beginning of the quarter.

Apple was down 3.81% at $97.87 with nearly 100 million shares traded, after having to remove the update of its new operating system for mobile phones tablets, just the latest setback suffered by the group since the introduction of the iPhone 6 and iPhone 6 Earlier in the month.

The Nasdaq suffered the brunt of the drop by Apple,while bloggers denounce the fragility of the iPhone 6, which ‘folds’ too easily, and software problems that cripple the smartphone.

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Pete Southern

About Pete Southern

Pete is an active investor with knowledge of all sectors but his first love are IPO's. A failed day trader who now understands research. A love of economics and writing seen Pete begin to publish content for various finance blogs. Our main editor and collator of contributions, he is your point of contact via editorial at stockpricetoday.com

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