On Tuesday, US stocks had wrapped up the session in a mixed complexion with trade-sensitive Dow and benchmark S&P 500 faltering on a slew of second-rated earnings’ reports, while tech-heavy Nasdaq eked out gains ahead of a number of mega-cap tech giants’ quarterly results.
In point of fact, Tuesday’s tottering in the Wall St. was almost entirely goaded by a spike in pandemic cases across the United States and Europe, while waning hopes of a US stimulus bill ahead of the November 3 election day had added to further strains.
Apart from that, US consumer confidence data for October had also tormented investors’ morale, as the American consumers’ confidence had plunged to a nearly four-year low this month, while a 2.1 per cent rise in US core capital goods orders in September, the index’s highest level in six years, had failed to ward off an utter reluctancy among market participants to open up new buying positions.
Wall Street falls as fading hopes of a stimulus bill weigh
Notably, US stocks had opened up the Tuesday’s market mostly lower, while investors’ sentiments slumped further after the White House officials had said that a pandemic relief bill could come in “weeks,” suggesting a pandemic stimulus is highly unlikely before the election day.
Besides, a sharp decline in consumer confidence in three of the swing US states ahead of the November 3 presidential election had downplayed a robust quarterly earnings’ report of Microsoft Corp. which faltered as much as 2 per cent in post-market trading, while shares’ prices of the drugmaker Eli Lilly & Co.
were jolted 6.9 per cent after its quarterly profit had taken a heavy beating due to an increase in expenses to develop a potential pandemic treatment. Quoting statistics, on the day’s Wall Street round off, the trade-sensitive Dow dwindled 0.80 per cent to 27,463.19 and S&P 500 shed 0.30 per cent to 3,390.68, while the tech-heavy Nasdaq gained 0.64 per cent to wind down the day at 11,431.35.
Meanwhile, addressing Tuesday’s tumble in the Wall St. as a flight-to-safety response among the investors, a head of fixed income strategy at WisdomTree Investments, Kevin Flanagan said, “This pullback that we’ve seen is a little bit more of a risk-off move as an additional stimulus package now has been pushed aside. That led to some disappointment. ”