On Friday, a slew of Wall Street stocks had wrapped up the day almost flatlined as market participants continued to sell off mega-cap tech shares, which in particular had driven all three key indices of Wall Street in to record closing highs last week, and kept pricing in on defensive stocks such as cyclicals and healthcare.
On top of that, benchmark S&P 500 that accounts for roughly 45 per cent of entire trading activities in the Wall Street alongside tech-heavy Nasdaq had reported weekly percentage declines, while Dow rounded off the session close to its all-time closing high reached earlier this week.
Apart from that, in the day’s Wall Street movements were largely catalysed by a wrestle between a sweeping sell-off wave in mega-cap tech stocks’ prices and a growing bet on defensives such as cyclicals, while S&P 500’s financials, materials and energy alongside industrials gained over 1 per cent, largely catapulted by a 9.9 per cent rise in Deere & Co shares’ prices.
Besides, Caterpillar in tandem had reported a 5.0 per cent gain to spike to an all-time high of $211.40 per share as market participants were heavily betting on a near-term economic recovery with Biden’s $1.9 trillion stimulus bill having been at the cusp of getting introduced in the US Congress.
Wall Street plunges as mega-cap tech stocks simmer, post weekly decline
Citing statistics, in the day’s Wall Street closing bell, Dow winded up the session almost dithered at 31,494.32 and benchmark S&P 500 shed 0.19 per cent to 3,906.71, while tech-heavy Nasdaq edged higher to close out the day at 13,874.46.
In the week, S&P 500 and Nasdaq were nudged 0.7 and 1.6 per cent lower respectively, while Dow eked out a weekly percentage gain of 0.1 per cent. Meanwhile, forecasting a jejune market landscape over the coming days, a chief market economist at Spartan Capital Securities in New York, Peter Cardillo said, “What we saw (this week) represents a market that is tired and may not do very much.
So, we are headed for some sort of a pullback, but I don’t think we’re there just yet. ”