Wall Street drops, as weaker construction spending stings

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Wall Street drops, as weaker construction spending stings

On Monday, the 4th of March, all three major indexes of Wall St. tottered, after a weak United States construction spending report had overshadowed the trade deal optimism. Apart from that, analysts were also claiming that the investors had taken advantages of an ongoing bullish bias running through the veins of the money chain and locked profits after the market’s strong start of 2019.

As investments in both public and private sector had drooled histrionically, US construction spending had experienced an unexpected fall in December 2018. Followed by the reveal of a weaker construction spending, economists were expecting that a revised fourth-quarter growth estimate could unveil further corrosions on US gross domestic product during the last quarter of 2018.

Before releasing a surprising downfall of construction spending, Wall St. had started the day higher on fresh optimism of a formal trade deal between the US and China at a summit by the end of March. Followed by the release of US construction spending data in late-morning US trading session, key Wall St.

indexes had started to topple and so far, the Dow Jones Industrial Average had lost over 1 percent to 25,767.68 and the Standard and Poor had shed 0.68 percent to 2,748.68, while the tech-heavy Nasdaq Composite fell more than 0.50 percent to 7,550.95.

Adding that the stocks could still trigger a bull-run on a potential trade deal, a Chief Strategist at BNY Mellon Investment Management in New York, Alicia Levine said, “We have been in this area now for two to three weeks. The market is consolidating and we are now at more normalized valuations”.