On Friday, a slew of US stock indices had wrapped up the day in an ambivalent texture with only Nasdaq being able to wind down in an affirmative territory, while benchmark S&P 500 lost footings and trade-sensitive Dow dwindled, as US Treasury bond yields took a pause from its blistering rally that hit a 14-month peak on yesterday.
In point of fact, Wall Street had witnessed a reversal of a recent trend of a meteoric upsurge in defensives and cyclicals that would more likely to be benefitted from a latest $1.9 trillion stimulus package, as investors seemingly had ramped up their bets on so-called growth stocks following a week of wears and tears while dumping the defensives in a bid to coffer up weekly gains.
Aside from that, a pause on US Treasury bond yields, which rose sharply over past seven weeks in a row, ended up the week close to a 14-month peak at 1.74%, failing to fuel up their recent streak of blowout gains as US Fed had decided against extending a nullification of a temporary law, scheduled to be expired on March 31, which in effect would prompt Wall Street lenders to set aside a large chuck of money in order to build up a capital buffer to soak up the pressures of any kind of systemic damage in money markets, eventually pouring fresh scorns over the shares’ prices of heavy-weight lenders.
Wall Street ends mixed, clocks weekly percentage decline
Citing statistics, in the day’s Wall Street closure, benchmark S&P 500 shed 0.06 per cent to 3,913.10 and trade-sensitive Dow shrugged off 0.71 per cent to 32,627.97, while tech-heavy Nasdaq gained 0.76 per cent to round off the session at 13,215.24.
On the week, S&P 500 and Nasdaq were nudged as much as 0.8 per cent lower, while Dow lost 0.5 per cent. Meanwhile, referring to a reversal of a latest trend in the Wall Street to price in heavily on cyclicals and defensives, a senior investment director at US Bank Wealth Management in Minneapolis, Bill Northey said, “What we see today is a more stable rate environment across the curve after multiple weeks of rising interest rates, and we are seeing some degree of reversal of leadership in the equity market. ”