Dow notches record closing peak on stimulus hopes; interest rate worries loom large

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Dow notches record closing peak on stimulus hopes; interest rate worries loom large

On Tuesday, Wall Street had wrapped up the session in an ambivalent tenure with benchmark S&P 500 and tech-heavy Nasdaq ending lower over frets of higher inflation alongside interest rates, though sharp gains in cyclical stocks over prospects of further fiscal aids helped trade-sensitive Dow notch a record closing high.

On top of that, since a number of traders had turned to US Treasury yields alongside other riskier assets following a remark from US Fed’s Bullard, who was quoted saying in a CNBC interview that the US economy was performing “generally well” and US inflation would likely to perk up later in the year, market participants dumped mega-cap tech stocks, while frets over a higher interest rate led to a slight moderation of benchmark S&P 500.

Nevertheless, in the day’s gains in trade-sensitive Dow were largely galvanized by the gains of defensives such as cyclical stocks, while optimisms over a $1.9 trillion pandemic stimulus bill as proposed by the US President Joe Biden, had brightened up the market outlook.

Though, S&P 500 and Nasdaq had botched to wrap up the day in the black as beforementioned, but, had been hovering near their record-closing highs.

Wall Street ends lower, but Dow clocks record-closing peak

Citing statistics, in the day’s Wall Street round off, Dow added 0.2 per cent to an all-time closing high of 31,522.22 and S&P 500 shed 0.06 per cent to 3,932.58, while Nasdaq was nudged 0.34 per cent lower to 14,047.50.

Meanwhile, referring to Biden Administration’s latest push to pass another round of trillion-dollar stimulus bill, a chief market strategist at Prudential Financial in Newark, New Jersey, Quincy Krosby said, “We came into this week with a positive perspective on the Biden administration’s attempt to deliver a sizeable package. Markets have greeted that with positive moves.