Wall St. slumped as hawkish Fed remarks weigh
by SOURAV D | VIEW 348
On Thursday, all three key indices of Wall St. had closed out the session in red inks following a number of sideway movements, as hawkish remarks from Fed officials had stoked frets of a continuation of an aggressive rate-hike policy, eventually weighing heavily on investors’ morale while dragging major growth stocks sharply lower. In the matter of the fact, in the day’s rancorous landscape in the Wall Street was almost entirely galvanized by a remark from Fed’s Bullard, who was quoted saying earlier in the session that the US Central Bank needs to keep raising rates as the Fed’s policy tightening “had had a limited effect on inflation” thus far, eventually pushing investors’ on their heels. Meanwhile, addressing to Thursday’s hawkish remark from US Fed, a portfolio manager at Kingsview Investment Management in Chicago, Paul Nolte said, “The Fed is still talking up, generally, interest rates. There might be some disagreement about the pace.
But interest rates are not coming down anytime soon”.Nonetheless, Fed Chair Powell was quoted saying following November 1-2 Fed policy meet that this might be the time to put an end to a hawkish rate-hike cycle, repercussion of which had helped pare some losses.
Wall St. closes lower after Bullard’s hawkish remarks
Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow edged 0.02 per cent lower to 33,546.32 following an utterly choppy session. Besides, tech-heavy Nasdaq dipped 0.35 per cent to 11,144.96, while Wall St.
bellwether S&P 500 shrugged off 0.31 per cent to 3,946.56. Nonetheless, Cisco shares’ prices spring up after the telecommunication industry giant had raised its full-year profit outlook, while Macy’s gained after raising profit forecast, adding a boost to a choppy trading session.