Wall St. ends higher, but posts weekly decline as Central Bank moves roil market

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Wall St. ends higher, but posts weekly decline as Central Bank moves roil market

All three key indices of Wall St. had reported modest gains on Friday, though the session’s rebound made little differences as investors’ frets over an impending recession appear to be growing exponentially. In factuality, Wall Street has been met with its worst weekly percentage decline in more than two years, as global Central Banks’ moves had roiled market and toiled trillions of dollars in equities across the globe.

S&P 500 had experienced its largest weekly plunge since the March of 2020, while investors remained watchful ahead of a long weekend, as money markets in the US will be closed on Monday due to Juneteenth holiday. If truth is to be spoken, latest unprecedented scale of jolt in the US equity market came forth as money markets were bracing for a hawkish US Fed stance, which in effect had tottered growth stocks.

Besides, after the US Fed had reaffirmed its view on Wednesday over an ultra-hawkish monetary policy, a mass-scale rout took place in the Wall Street, while similar moves from the BoE with inflation jumping to a 9 per cent, closer to a latest rise in US CPI (Consumer price Index) to 8.6 per cent, had kept investors’ on their toes.

Wall St. rebounds, but posts weekly decline

Citing statistics, in the day’s Wall St. wind-down, the trade-sensitive Dow dropped as much as 0.13 per cent to 29,888.78 and benchmark S&P 500 added 0.22 per cent to 3,674.84, while tech-heavy Nasdaq climbed as much as 1.43 per cent to 10,798.35.

Over the week, Dow dwindled as much as 4.79 per cent, the biggest decline since October 2020, while Wall Street bellwether S&P 500 and Nasdaq lost 5.79 per cent and 4.78 per cent, repectively. Meanwhile, stressing that the US equity market might be trying to gauge the extent of risk, a director of portfolio strategy at Verdence Capital Advisor in Hunt Valley, Maryland, Megan Horneman said, “Right now you are going to see a lot of volatility and it is primarily going to be because of the fact the Fed is going to be front-end loading all these rates hikes and just trying to gauge the inflation picture and it is very clouded right now”.