Wall St. closes lower in broader sell-off fuelled by inflation jitters

On Tuesday, all three key indices of Wall St. edged lower with benchmark S&P 500 hitting a nearly one-month low earlier in the session

by Sourav D
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Wall St. closes lower in broader sell-off fuelled by inflation jitters

On Tuesday, all three key indices of Wall St. had winded down the session in a red sea of Nile with benchmark S&P 500 reporting nearly a 1 per cent decline for second straight session in a row, tumbling to a nearly one-month low, as a steep hike in commodity prices coupled with a chronic labour shortage had ratcheted up frets that a near-term inflation-surge could metamorphosize a longer-term increase in inflation indicators, which might eventually prompt the US Federal Reserve to taper off its monthly bond repurchase program alongside to adopt a relatively hawkish monetary policy.

In point of fact, in the day’s broad-based decline in the Wall St. seemed to be a continuation of yesterday’s downfall with mega-cap tech stocks tottering sharply, though, despite a hesitant opening of the session, all three key indices of Wall St.

had managed to pare some of their earlier losses in late-afternoon trading. Besides, a JOLTS data released earlier in the day unveiling that the US economy had created a record number of jobs in March amid a chronic labour shortage, most likely to be prompted by an additional $300 per week in state unemployment benefits which happened to be higher than most minimum job wages, had spurred up inflation worries further following reveal of fresh repercussion of massive fiscal stimulus from the Biden Administration.

Wall St. ends sharply lower as inflation fears feather

Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow dwindled 1.36 per cent to 34,270.61 and benchmark S&P 500 shed 0.87 per cent to 4,152.1, while tech-heavy Nasdaq edged 0.09 per cent lower to 13,389.43.

Meanwhile, referring to an en masse market weakness following Friday’s record closing highs Dow and S&P 500, a senior market strategist at LPL Financial in Charlotte, North Carolina, Ryan Detrick said, “Today feels like a catch-up in that tech has been weak so far this month and it’s finally spilled over into other areas of the market and we’re seeing broader weakness”.

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