Wall St. tumbles as pandemic cases soar; Boeing, travel stocks weigh

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Wall St. tumbles as pandemic cases soar; Boeing, travel stocks weigh

On Tuesday, all three key indices of Wall St. fell for a second straight day in a row as a global-scale spike in pandemic cases had grievously wounded travel stocks, while a letter from US Fed Chair Powell to Florida Senator Rick Scott, a Republican, underscoring US Central Bank’s policy to address a sharp shoot-up in inflation this year, added to further strains.

In point of fact, following reveal of a media topline that the US Fed Chair Jerome Powell had said in a letter dated back to April 8 that the US Fed would not tolerate any overshoot of its inflation target of 2 per cent, market whispers of a potential rate hike grew louder, eventually taking a greater toll on investors’ morale.

Aside from that, shares’ prices of Kansas City Southern surged as much as 15.25 per cent on prospects of a potential bidding war following reports that the Canadian National Railway had placed a bid worth of about $30 billion for the Delaware-incorporated US railway operator, roughly $5 billion more than that the Canadian Pacific had offered last month, which in effect had kept a lid on the losses, though, shares’ prices of Boeing Co.

faltered as much as 4 per cent after an unexpected departure of its Chief Financial Officer.

Wall St. dips as investors pile into defensives

Citing statisitcs, as financial and energy had felt the sharpest pinch on the day’s Wall St.

and traders were heavily betting on defensive stocks such as real estates, healthcare and utilities while shrugging off the so-called growth stocks, trade-sensitive Dow dwindled 0.75 per cent to 33,820.51 and benchmark S&P 500 shed 0.68 per cent to 4,134.96, while tech-heavy Nasdaq tottered 0.92 per cent to wind down the day at 13,786.27.

Meanwhile, as travel and entertainment stocks bore the heaviest brunt in the day’s Wall St. alongside financial stocks, referring to a growing cynicism on interpretation of large US lenders’ quarterly earnings’ report published last week, a senior research analyst at Odeon Capital Group, Dick Bove said, “People made the assumption this was a gangbusters quarter for the banking industry when that's far from the truth”.