Wall St. closes mixed as Dow extends recoup after strong US manufacturing data



by   |  VIEW 714

Wall St. closes mixed as Dow extends recoup after strong US manufacturing data

In a choppy trading session in the Wall St. on Friday, a slew of US stock indices had wrapped up the day in an ambivalent texture with trade-sensitive Dow extending a recoup from previous session, while a still-inflaming inflation concern seemed to have waned investors’ appetite for riskier assets in the US money markets.

In point of fact, in the day’s modest gains in trade-sensitive Dow was largely prodded by an IHS Markit data that had shown its index for flash US manufacturing PMI (Purchasing Managers’ Index) shot up to 61.5 over first half of May, the strongest level since June 2009, nonetheless, a logjam of unfinished orders amid a steep shortage of labours and raw materials seemingly had kept a lid on the gains.

Aside from that, as the UK-based British-American business group, IHS Markit had underpinned the possibility of a strong build-up in underlying price pressures throughout the year alongside a copious uptick in production costs, ramping up the frets of a rate-hike further amid growing likelihoods of a long period of higher inflation which would more likely to force the US Fed to taper its fiscal support for the economy, S&P 500 had pared earlier gains on late-afternoon trading and ended up in red inks.

Wall St. ends mixed as Dow extends gains

Citing statistics, in the day’s Wall St. wind-down, trade-sensitive Dow added 0.36 per cent to 34,207.84 and benchmark S&P 500 shed 0.07 per cent to 4,155.86, while tech-heavy Nasdaq was nudged 0.48 per cent lower to wrap up the day at 13,470.99.

On the week, Dow shed 0.47 per cent and S&P 500 lost 0.33 per cent, while Nasdaq clocked a weekly percentage gain of 0.75 per cent, snapping out a four-week long streak of losses. Meanwhile, referring to a growing inflation jitter tormenting investors’ morale, AXS Investments Chief Executive Greg Bassuk said, “Everybody is grappling with the timing and extent of the COVID recovery.

Inflation fears have really been triggered by some of these positive economic reports.