On Monday, all three key indices of Wall Street were met with sharp downturns with tech-heavy Nasdaq tottering as much as 1.25 per cent as market participants were engaged in a vindictive leg of profit-taking wave ahead of earnings season, while investors stepped up cautions in a bid to buffer the risks associated with the turmoil on Capitol Hill.
In point of fact, as a slew of US stocks fell across the board in the day, snapping a four-day long streak of gains, a double whammy of a profit-taking wave alongside an escalation in tension in the Capitol Hill following an introduction of the 25th Amendment act to impeach the US President Donald Trump, seemed to have perturbed investors’ morale and had submerged all three key indices of Wall Street.
Notably, major indices of Wall Street had surged to their record closing highs last week and registered robust weekly percentage gain on growing bets that the Democrat-led both chambers in US Congress would help a Biden Administration to fulfil its electoral agendas, while a remark from the President-elect Joe Biden that the next pandemic stimulus bill would proffer trillions of dollars in fiscal aid, had led to a hypnotic rally.
Wall Street falls as uncertainties linger over more attacks on US Capitol
Citing statistics, in the day’s Wall Street closing bell, trade sensitive Dow dwindled 0.29 per cent to 31,008.69 and S&P 500 shed 0.66 per cent to 3,799.61, while tech-heavy Nasdaq was nudged 1.25 per cent lower to 13,036.43.
Meanwhile, citing investors frets over further attacks on Washington DC alongside all 50 US state capital cities ahead of the President-elect Joe Biden’s inauguration on January 20, a chief investment officer at Commonwealth Financial Network in Waltham, Massachusetts, Brad McMillan said, “When markets are looking at something as critical as the governance of the United States, even a little bit of uncertainty can have a meaningful impact.
What does that do to the ability of the parties to work together to pass policy things like stimulus”.