On Tuesday, all three key indices of Wall St. edged slightly lower, chartering at a spitting distance to their Monday’s closing levels, as investors seemed to be looking for directions amid growing uncertainty over the trajectory of a benign inflation landscape.
In point of fact, in the days’ Wall St., major stock indices had witnessed a number of sideway movements, whirling between little gains and losses following Monday’s steep gains. Nonetheless, a drop in US Treasury bond notes with 10-year Yields bottomed to a fresh two-week low of 1.56 per cent, offset inflation worries to some extent and kept a lid on the losses.
However, although the US Federal Reserve had continued to play down the impacts of an inflation-surge lurking over the horizon, Fed Vice Chair Richard Clarida was quoted saying earlier in US trading hours that the US Central Bank could adopt necessary measures to cool off the latest jump in inflation indicators, tempering investors’ morale further.
Wall St. ends lower as inflation fears persist
Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow fell 0.14 per cent to 34,346.91 and benchmark S&P 500 shed 0.15 per cent to 4,190.62, while tech-heavy Nasdaq ended 0.01 per cent lower to 13,660.11.
Meanwhile, referring to the possibilities of a range-bound trading landscape in the Wall St. over coming days, a chief equity strategist at US Bank Wealth Management in Minneapolis, Minnesota, Terry Sandven said, “On balance the market is probably due for a sideways trending mode here now with first quarter results largely in the bank.
If you look at concerns on the horizon, clearly inflation is one of them but the bond market is not signalling widespread concerns of inflation. ”