On Monday, all three key indices of Wall St. had wrapped up the session lower, snapping a three-session long rally with defensives such as real estate and discretionary sectors leading the hitch, as investors appeared to be digesting the latest remarks from US Fed over their future path regarding interest rate hikes.
On top of that, Monday’s decline in the Wall Street was galvanized by a lack of major catalyst, while ECB’s downbeat remarks regarding Eurozone inflation had added to further woes. Aside from that, as investors were looking towards Tuesday’s PPI (Producers Price Index) data, which is a critical indicator to future CPI (Consumer Price Index) alongside the US Fed’s key inflation indicator core PCE (Personal Consumption Expenditure) price Index, market participants seemed to have taken a cautious approach.
Besides, mixed signals from the US Fed policymakers appeared to have spooked investors, as they sought to shrug off defensives such as real estates from their portfolios. Earlier in the day, Fed Vice Chair Lael Brainard was quoted saying that the US Central Bank would likely to slow down its pace of rate-hike, however, Fed’s Waller said on Sunday that the Fed would likely to take a less hawkish approach at its December policy meet, nonetheless, he also had cautioned that this should not be viewed as a softening of Fed’s commitment to heave down the inflation indicators, eventually confining investors’ morale on a catch-22.
Wall St ends lower as investors digest Fed policymakers’ remarks
Citing statistics, in the day’s Wall St. round-off, the trade-sensitive Dow dropped 0.63 per cent to 33,536.7 and Wall Street bellwether S&P 500 shed 0.89 per cent to 3,957.25.
Besides, tech-heavy Nasdaq was nudged 1.12 per cent to 11,196.22. Meanwhile, addressing to latest remarks from Fed policymakers, a chief investment officer at North Star Investment Management Corp., Eric Kuby said, “There is still a sensitivity to Fed speak... One was a little hawkish, one was a little dovish”.