On Tuesday, a slew of Wall Street tech stocks had wrapped up the day in a red sea of Nile, extending their recent leg of losses in face of a growing concern over valuations alongside a higher inflation, though in a late-afternoon twist in the tail, S&P and Dow had managed to eke out gains after Fed’s Powell had pledged before Senate Banking Committee to keep a near-zero benchmark borrowing cost while downplaying the risks of a higher inflation.
In point of fact, Fed Chair Jerome Powell’s speech before Senate Banking Committee had acted as a major market mover in the day’s Wall Street, while both retail and Wall Street institutional investors, who had been on a havoc-scale sell-off spree over the recent past, mostly due to a growing concern of a higher inflation alongside a higher interest rate later this year, seemed to have solaced by the latest remarks from Fed’s Powell.
In tandem, speaking before the US Senate Banking Committee, Fed’s Powell had reiterated the needs for a fiscal stimulus and vowed to keep interest rate to a record-low in an intermediate-term outlook, while Powell had also undermined risks of a higher inflation late in the year citing three decades of growth alongside a low inflation.
Dow, S&P back into the blacks in late-afternoon trading, Nasdaq plunges
Citing statistics, in the day’s Wall Street closing bell, Dow managed to wrap up the session 0.05 per cent higher to 31,537.35 after chartering most of the day in the red inks and S&P 500 added 0.13 per cent to 3,881.37, while Nasdaq faltered 0.5 per cent to round off the day at 13,465.20.
Meanwhile, referring to a growing defensive bet in the Wall Street alongside a rapid ease-off of speculative trading on mega-cap tech stocks which seemingly had fuelled up the Wall Street rally in pandemic-battered 2020, a head of market structure and a proprietary trader at Bright Trading LLC, Dennis Dick said, “People are buying the dip, a move that’s been rewarded for months in a one-sided market.
It’s tough to be a bear, it’s really tough. The only fear out there is the fear of missing out. ”