On Monday, all three key indices of Wall St. had beaten a hasty retreat, slipping off last week’s record levels, as investors’ caution appeared to be mounting amid frets of a higher interest rate following a sharp pick up in inflation indicators last month, while market participants awaiting directives from first-quarter corporate earnings reports, had taken a greater-than-expected toll on investors’ morale.
On top of that, rising scepticisms over valuations of a swathe of stocks in a US money market which has long been chartering at record levels, riding on the back of tech-related growth stocks, prompted traders to take a breather while awaiting corporate earnings’ report from deep-pocket enterprises due this week.
Fanning up the flames further, Tesla Inc. shares took a lofty header in the day, jolting as much as 3.4 per cent, after media headlines had revealed that a Tesla vehicle, which was believed to be in a self-driving mode, had crashed into the woods on Saturday and led to the deaths of two passengers.
Apart from that, a nearly 9 per cent plunge in Bitcoin’s valuation over the weekend, seemingly had added to further strains on Tesla Inc. stocks given the Tesla boss Elon Musk’s $1.5 billion investment in bitcoin last month.
In tandem, benchmark S&P 500 closed out mostly lower with mega-cap tech stocks such as Microsoft, Amazon and Nvidia weighing on the index, while Nvidia shares’ prices were nudged as much as 3.5 per cent lower after the UK Government had raised national security concerns over a $40-billion Nvidia-Arm Holdings mega-merger deal.
Wall St. falls as investors await corporate earnings due this week
Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow shed 0.36 per cent to 34,077.63 and benchmark S&P 500 dropped 0.53 per cent to 4,163.26, while tech-heavy Nasdaq was nudged 0.98 per cent lower to 13,914.77.
Meanwhile, referring to a rising investors’ caution ahead of quarterly earnings’ report from deep-pocket corporate holdings due this week, a chief market economist at Spartan Capital Securities, Peter Cardillo said, “The market has had a huge jump to the upside so it needs to take a little bit of rest.
For now, it's just a little bit of profit taking as traders await results from big tech names on Wall Street. ”