On Monday, all three key indices of Wall St. had opened up the week in an upbeat texture with benchmark S&P 500 alongside Nasdaq shelving more than 1 per cent in gains, as US Treasury bond notes and American Dollar had beaten hasty retreats, helped uplift mega-cap tech conglomerates as investors seemed to be ‘buying the dip’ following heavy tottering in tech stocks over recent weeks amid inflation fears.
In point of fact, in the day’s Wall St. was largely pivoted on a growing number of speculative bets that the US President Joe Biden’s $2 trillion infrastructure proposal would likely to become sunken, while another perspicacious bunch of Wall St.
analysts had been quoted saying that the US President Joe Biden might not be able to deliver an economic boost amid a deeply divided US Congress, eventually receding inflation worries. On top of that, as inflation frets had been obliviated up to some extent, US Treasury bond notes had hit a two-week low alongside American Dollar Index (DXY), propelling the benchmark S&P 500’s tech sub-index as much as 2 per cent higher.
Wall St. rallies as inflation fears calm down
Citing statistics, in the day’s Wall St. closure, benchmark S&P 500 surged just a notch shy of 1 per cent to 4,197.05 and trade-sensitive Dow gained 0.54 per cent to 34,393.98, while tech-heavy Nasdaq was nudged as much as 1.64 per cent higher to 13,691.64.
Meanwhile, questioning the US President Joe Biden’s ability to hold forth on to his $2 trillion infrastructure proposal, a chief investment strategist at CFRA Research in New York, Sam Stovall said, “The reason interest rates are coming down is because many on Wall Street are questioning how successful President Biden will be in pushing through that stimulus package, or pushing through as big an infrastructure package as he is hoping.
Yields are coming down because inflation worries are coming down and as a result, we are finding that tech stocks are becoming a bit more attractive once again. ”