Late session slump drags Wall St. lower; gold sets another record

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Late session slump drags Wall St. lower; gold sets another record

On Tuesday, all three key indices of Wall St. had rounded off the day sharply lower with tech stocks tottering the most, as a mixed bag of earnings’ report from a basket of big-league US companies alongside an escalation in Sino-US tension had pulled the US stocks lower.

In point of fact, this week has been marking up the centrepiece of earnings’ season for a pandemic-scarred Q2, 2020, nonetheless, several big companies proffered earnings’ reports that fell short of analysts’ expectations this week, eventually lured the market participants’ away from the equity market to propel an intransigent gold futures rally, which had set another record closing high on the day’s commodity market closure.

Wall Street in peril after downcast corporate earnings’ reports

If truth is to be told, Tuesday’s tottering in the Wall St. had largely been provoked by a number of downbeat earnings’ report as beforementioned, while a 4.8 per cent drag in 3M stocks had weighed heavily on trade-sensitive Dow apart from an abrupt escalation in Sino-US tension, while Ecolab faltered 8.6 per cent to remark the largest loss in S&P 500 after the company’s in-dine food services businesses had taken a heavy header due to the pandemic-led forced closure.

Besides losses of big tech companies ahead of their hearings in front of US Congress had contributed to drag the Nasdaq lower, while on the winning side the US drugmaker Pfizer reported a better-than-anticipated quarterly profit over the second quarter of the year and Pfizer stocks climbed 3.9 per cent on the day’s market wind down.

Citing statistics, on the day’s Wall St. round off, the S&P 500 fell by 0.6 per cent to 3,218.44 after a late-afternoon sell-off wave had pared the gains scored earlier on the day, while Dow dropped 0.8 per cent to 26,379.29 and Nasdaq was nudged 1.3 per cent lower to drawdown the day at 10,402.09.

Apart from that, referring to a darker outlook for Wall St. in a medium- to longer-term outlook as economists and analysts were indicating a muted market response at least until mid-2021, a chief investment officer at US Bank Wealth Management, Eric Freedman said, “Most investors are looking through 2021 calendar year earnings, as opposed to paying too much attention to the rest of this year.