On Wednesday, all three key indices of Wall St. had fallen across the board in context of a clutch of caustic fundamentals, as US private payrolls jumped last month, handing out another feasible reason to the US Fed to stay at its hawkish monetary policy. Aside from that, although, major indices in the Wall Street had wrapped up their largest two-day long rally since 2020 on Wednesday, energy stocks ended sharply higher with OPEC and their Russia backed allies had agreed to slash output by 2 million bpd (barrels per day) or a 2 per cent of entire global crude oil output. Apart from that, US ADP National Employment report released late on the day had underscored that US private payrolls rose to 208,000 positions last month, well-above an expectation of 200,000 jobs. However, as labour market appears to be resilient so far amid warning from the US Fed that unemployment could hit nearly 4.5 per cent by early-2023, the US Federal Reserve is expecting to hand out a fourth straight rate-hike at its November 1,2 policy meet, adding to worries for growth stocks which would likely to bear the heftiest brunt of further rate-hike.
Wall St. falls as rate-hike bet bolsters
Citing statistics, in the day’s Wall St. wind-down, Dow drowns as much as 0.21 per cent to 30,253.77 and Wall Street bellwether S&P 500 shed 0.33 per cent to 3,778.55, while tech-heavy Nasdaq was nudged 0.59 per cent lower to 11,110.90.
Aside from that, citing that the US Fed would highly likely to continue its current leg of rate-hike cycle, a head of ETF strategy at Allianz Investment Management LLC, Johan Grahn said, “This is a very temporary blip in the market.
I don't see that changing the Fed's path. They're not going to let the early signs of inflation peaking scare them into a pivot or even a conversation about a pivot”.