On Wednesday, all three key indices of Wall St. fell across the board, mostly led by a drag in Amazon.com Inc. and Microsoft Corp. shares, as investors’ optimism over another round of trillion-dollar stimulus bill before the November 3 US Presidential election had evaporated.
In point of fact, Wednesday’s tottering of NYSE-listed shares, which had extended its losing streak into the second consecutive day in a row, was mostly catalysed by a downbeat remark from the US Treasury Secretary Steven Mnuchin who was quoted saying earlier in the day that a deal seemed highly unlikely before the Presidential election, adding to a fragile investors’ morale amid a mixed bag of corporate earnings’ report.
If truth is to be told, US stocks had been rallying in recent weeks over hopes that the US Government would provide a much-needed fiscal stimulus, but Mnuchin’s remarks had poured cold water on market participants’ optimism, eventually leading to a broad-based sell-off amid mixed signals on inflation indicators.
Besides, speaking at a conference sponsored by the Milken Institute, Mnuchin said earlier in the day, “At this point getting something done before the election and executing on that would be difficult, just given where we are and the level of detail, but we’re going to try to continue to work through these issues.
US shares fall after Mnuchin dims stimulus hopes
Citing statistics, on the day’s Wall St. wind down, the trade-sensitive Dow fell 0.58 per cent to 28,514 and S&P 500 shed 0.66 per cent to 3,488.67, while the tech-heavy Nasdaq was nudged 0.80 per cent lower to round off the day at 11,768.73.
Meanwhile, citing that the investors’ optimism appeared to have fallen from the sky following robust gains over the past three weeks, a head of trading and research at Harvest Volatility Management in New York, Mike Zigmont said, “Optimism took hold like a rocket last week and now it’s coming back down to earth a little bit.
I think a stimulus as a large macro event is already baked into stock prices. It’s just a question of when the details emerge and when the stimulus goes into effect. ”