Shares in the U.S. plummeted following the decline of the stocks in the Asian market as the Bank of Japan left the interest rate unchanged.
The market was surprised with the decision of the Bank of Japan to keep the negative interest rate unchanged at their recent policy meeting.
Stefan Worrall, director of Japan equity sales at Credit Suisse, said that the market had clearly worked itself into a frenzy of expectations, demanding that the BOJ take action, and in retrospect that looks like a misguided view that failed to recognize the dilemma that recent economic dynamics have presented for the BOJ.
Aside from the BOJ, the Federal Reserve also concluded on their two-day policy meeting to hold the interest rate as it focused on the global economic condition.
At the trading session earlier, the Nasdaq 100 futures slumped 0.45 percent or 20 points while the Dow futures lost 139 points, or 0.77 percent. The Standard & Poor’s 500 dipped 16 points or 0.74 percent.
In addition to, the U.S. GDP for the first quarter inched up for only 0.5 percent while the consumer spending advanced 1.9 percent, still low as compared to the growth during the same quarter in 2015. The weekly jobless claims stood at 257,000.
Meanwhile, Deutsche Bank advanced 3.4 percent, beating the market expectation on their recent earnings report. Facebook succeeded the analysts expectation as well with a jump of 8 percent at the close of the market.
Some of the companies which posted quarterly earnings report recently included Amazon, Ford Motor Company, Mastercard Incorporated, Baidu, LinkedIn and United Parcel Service.
In Asia, the Nikkei 225 dropped 3.61 percent, while the Taiwan Weighted hit a fresh one-month low with a slump of 1.04 percent.
The declining stocks on the Tokyo Stock Exchange were 1721 and the rising ones were down to 235 while 43 remained unchanged. On the other hand, there were 185 advancing stocks on the Taiwan Stock Exchange and the falling stocks were 563 while the remaining 104 were stable in the end.
Elsewhere, Brent oil for July delivery declined 0.49 percent or 0.23 to trade at $46.70 per barrel and the crude oil for delivery in June fell 0.46 percent or 0.21 to change hands at $45.12 per barrel. Gold futures gained 0.50 percent or 6.25 to $1256.65 per troy ounce.Publication source