On Thursday, a slew of US stock indices had wrapped up the session in red inks as a furry of upbeat economic data spurring up inflation frets further had weighed heavily on investors’ morale, while a latest leg of paradoxical penetration of meme stocks into a retail-buying frenzy appeared to have run out of legs, leading to a decline in tech-heavy Nasdaq.
In point of fact, all three key indices of Wall Street had opened up the day in a hesitant note ahead of key job data, while major indices declined further following release of a raft of upbeat economic data that pointed towards a rapid upsurge in inflation indicators, however, major stock indices managed to pare a tad of their earlier losses in afternoon trading after the US President Joe Biden had agreed to a major concession on corporate taxes for domestic turnovers.
Nonetheless, even a sharp reversal Joe Biden’s policy stance about corporate taxations, could not brush aside the glooms associated with an inflation surge. Earlier in the day, the US Labour Department had reported that the number of Americans filing for state unemployment benefits declined below a 400,000-mark last week for the first time since onset of the pandemic outbreak more than a year earlier, while ADP employment report had unveiled that US non-farm payrolls rose to a eleven-month peak, adding to holocaust on US equity markets.
Wall St. falters as upbeat data spur up inflation fears
Citing statistics, in the day’s Wall St. round off, Dow edged 0.09 per cent higher to 34,633.23 and benchmark S&P 500 soured 0.22 per cent to 4,198.68 following a steep downturn in mega-cap tech stocks alongside the so-called tech associated growth stocks, while Nasdaq was nudged as much as 0.86 per cent lower to wind up the day at 13,637.84.
Meanwhile, referring to an upsurge in inflation indicators over coming months given the pace of recovery in a US economy which had witnessed the shortest recession on record last year, President of Pacer ETFs, Sean O’hara said, “The robust jobs data provides a challenge to the inflation narrative as better jobs result in higher spending which would further contribute to the inflationary trends. ”