Wall St. ends almost flatlined after Powell remarks

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Wall St. ends almost flatlined after Powell remarks

On Wednesday, following a session that had witnessed a number of wild swings, all three key indices of Wall St. ended almost dithered after Fed Chair Powell had told that he had been looking to fight inflation, but he had no intention to draw in a recession.

Nonetheless, his remarks had little impacts on money market, as it remained utterly choppy with energy shares bearing the heaviest brunt following a drawdown in prices of crude oil futures. On top of that, Dow dwindled as a consortium of brokerage firms had downgraded the index to “underperform”.

Nonetheless, in the day’s Wall Street was largely pivoted by Fed’s Powell’s remarks, as after opening sharply lower, Wall Street’s main indices flipped upside following Powell’s speech, as he was quoted saying that the Central Bank is committed to bring down an inflation that is running at a 40-year peak.

Besides, Fed Chair Powell also addressed that the US Federal Reserve policymakers were vying to vent out a way to avert a recession that might just come into being during the process. However, during late-afternoon US trading hour, as investors had digested Powell’s remark, a sell-off wave took place and most major indices ended the session almost flatlined.

If truth is to be spoken, a recession is nearly inevitable, if the US Fed remains as hawkish as it is at this standpoint.

Wall St. ends nearly flatlined after Powell’s speech

Citing statistics, in the day’s Wall St.

wind-down, trade-sensitive Dow dwindled as much as 0.18 per cent to 30,476.11 and benchmark S&P 500 shed 0.18 per cent to 3,758.14, while tech-heavy Nasdaq shed 0.15 per cent to 11,052.41. Meanwhile, the Chief strategist at Baker Avenue Asset Management in San Francisco, King Lip said, “Markets continue to be volatile. Certainly, we are not out of the woods yet... The concerns are still there”.