On Tuesday, all three key indices of Wall St. had edged lower, but benchmark S&P 500 and trade-sensitive Dow stayed in a spitting distance to their record closing highs reached a day earlier, as a swathe of strong US economic data remained unheeded amid angsts over upcoming earnings’ season.
In point of fact, in the day’s Wall St., both S&P 500 and Dow were shuttling back and forth between the blacks and reds multiple times, though following a late-afternoon selling wave, both indices had rounded off the day in red inks, but managed to hover near their record closing peaks.
Surprisingly, in the day’s downfalls in the Wall St. came against the backdrop of more robust US economic data, as US Labour Department’s Job Openings survey report had unveiled that the US job openings had spiked to a two-year peak in February, eventually trimming the pressures on a gradually healing US labour market.
Apart from that, with vaccination drives against pandemic pathogen gearing up across major economies, the IMF (International Monetary Fund) had raised its full-year global growth forecast to 6.0 per cent from an earlier 5.5 per cent, a level never seen in five decades.
Wall St. leaves strong economic data unnoticed amid angsts over earnings’ season
Nevertheless, despite a raft of robust US economic data, investors remained cautious ahead of an earnings’ season which is expected to register a profit growth of 24.2 per cent in S&P compared to the same time a year earlier.
Citing statistics, in the day’s Wall St. closing bell, benchmark S&P 500 fell 0.10 per cent to 4,073.94 and trade-sensitive Dow shed 0.29 per cent to 33,430.24, while tech-heavy Nasdaq edged 0.05 per cent lower to 13,698.38.
Meanwhile, referring to a growing uncertainty on United States’ stance in a likely economic boom this year, a Senior Vice President at Wedbush Securities in San Francisco, Stephen Massocca, said, “The big unanswered question is how open the economy is right now and how many people are out there.
These security prices are reflecting an anticipation that the economy is going to get back to normal sooner rather than later and it is not exactly clear where we are in that process. ”