Wall St. ends at flat-note as caution mounts ahead of Fed policy meet statement



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Wall St. ends at flat-note as caution mounts ahead of Fed policy meet statement

On Tuesday, a slew of Wall St. stock indices had rounded off the session almost dithered, however, had managed to pull the plugs off yesterday’s broad-based sell-offs, as investors’ cautions spurred up ahead of Wednesday’s US Fed policy meet statement, while a growing discontent among market participants that even the big enchiladas like of China’s Evergrande, the world’s 122nd-largest group, could go down on its knees, added to further fracas.

Aside from concerns over a likely bankruptcy looming over China’s Evergrande - which has over a Brobdingnagian $300-billion outstanding mostly to retail clients and is due to pay off a roughly $88 million in bond repayments as early as on Thursday, but was reportedly proffering discounted real-estate properties in exchange of wealth management services - investors appeared to be utterly cautious ahead of Wednesday’s Fed policy meet statement.

If truth is to be spoken, a majority of Fed policymakers among 17, had shown a sheer urgency over recent past to begin a tapering of fiscal supports for the economy before end-2021, while loudening whispers of an increase in corporate taxation to 26.5 per cent from a present 21.0 per cent, had fanned up the flames further.

Wall St. ends flat ahead of Fed policy statement

Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow fell 0.14 per cent to 33,922.54 and Wall Street bellwether S&P 500 edged 0.08 per cent lower to 4,354.15, while tech-heavy Nasdaq rose 0.22 per cent to 14,746.40.

Meanwhile, addressing to latest loggerheads at Evergrande alongside a quarrelling US Fed over easing of fiscal support for the economy, a managing director at Wedbush Securities in Los Angeles, Michael James said, “People have been preconditioned to buy pullbacks for most of the last year plus.

But that overhead nervousness is still there. The Evergrande situation is still a black cloud hanging over global markets. Combine that with uncertainty with Fed commentary coming tomorrow, and there's a reluctance to get overly aggressive on the long side”.