Morning Report 24 Sep 20: US sharemarkets fell on Wednesday

Chairman Jerome Powell reiterated that there is a long way to go for the US economic rebound, which will likely require more support. Vice Chairman Richard Clarida and regional Fed chiefs also cited the importance of fiscal policy in speeches. Shares of Amazon (-4.1%) and Apple (-4.2%) both dropped. Tesla's (-10.3%) "Battery Day" event fell short of expectations. But Nike (+8.8%) rallied to record highs on strong earnings. Johnson & Johnson's (+0.2%) first big US trial of a one-dose COVID-19 vaccine pushed its shares higher. The Dow Jones index fell by 525 points or 1.9%. The S&P500 index lost 2.4% and the Nasdaq index dipped 330 points or 3%. 

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399, AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124, AFSL 234945 (the Bank). The Bank and its subsidiaries have effected or may effect transactions for their own account in any investments or related investments referred to in this report. This report is not a recommendation to buy, sell or hold any securities or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. For this reason, any individual should, before acting on the information in this report, consider the appropriateness of the information, having regard to the individual's objectives, financial or taxation situation and needs and, if necessary, seek appropriate professional advice. This report is produced by Commonwealth Research based on information available at the time of publishing. We believe that the information in this correspondence is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report.