Wall St. sell-off worsens as Nasdaq confirms correction territory

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Wall St. sell-off worsens as Nasdaq confirms correction territory

On Wednesday, all three key indices of Wall St. had stretched out their latest leg of ludicrous losses with tech-heavy Nasdaq confirming a correction territory, winding down 10.7 per cent below from November 19 record closing peak, as a mixed bag of quarterly earnings’ reports coupled with a sustenance in investors’ frets over higher Treasury Yields alongside uncertainties on US Fed’s monetary policy had taken a greater than anticipated toll on market participants’ morale.

Nonetheless, Bank of America and Morgan Stanley alongside Procter & Gamble bucked the trends as the blue-whale US lenders closed out bank earnings in an upbeat tenure, while Procter & Gamble shares surged after quarterly profit outlook raise.

However, ahead of US Fed’s January 25-26 policy meet which would likely to add further evidence on an ostensible earlier-than-anticipated rate-hike, so-called growth stocks tottered further with tech-heavy Nasdaq having nudged as much as 10.7 per cent from its November 19 record closing peak.

Prior to this, Nasdaq confirmed a correction back in the early 2021 when the index shrugged off over 10 per cent between February 12 and March 8. This has been the fourth time when Nasdaq had found itself into a correction territory over past two years, as waves of pandemic outbreak continued to shake off global markets.

When an index closes below 10 per cent of its most recent record closing high, a correction territory is confirmed. Wall St. extends decline on tech drag, as Apple falls 2.1%, Tesla tumbles Citing statistics, in the day’s Wall St.

closing bell, trade-sensitive Dow dwindled 0.96 per cent to 35,028.65 and benchmark S&P 500 shed 0.97 per cent to 4,532.76, while Nasdaq lost 1.15 per cent to 14,340.26. Meanwhile, addressing to a likely tightening up of monetary policy from the US Fed in a near term outlook, a Chief global market strategist at Invesco, Kristina Hooper said, “Any beginning of tightening often results in significant volatility and I think there is always that risk that there is a policy error and it ends the economic cycle. So we just have a lot of apprehension”.

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