Wall St. tumbles in seesaw session ahead of key inflation data



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Wall St. tumbles in seesaw session ahead of key inflation data

On Wednesday, all three key indices of Wall St. had closed out the session modestly lower following a late-afternoon sell-off wave, as a key US CPI (Consumers Prices Index) inflation data scheduled to be released on Thursday had proffered a sagacious excuse for market participants to catch their breaths.

In point of fact, a slew of major US stock indices remained largely range-bound this week with defensive bets holding forth a momentum into positive trajectory, as investors seemed to be awaiting key inflation data for hints on whether US Fed would relax its fiscal support for a roaring US economy.

Nonetheless, US Fed Chair Powell was quoted saying later last month the US Federal Reserve had no plans to taper off fiscal supports for the economy, while the US Central Bank was prepared to tolerate a higher inflation reading, eventually spurring up bets that the US Fed would highly unlikely to abandon a near-zero interest rate policy in a near term which in effect had weighed heavily on investors’ morale.

However, in the day’s Wall Street, all three key indices of Wall Street had opened up the session sharply lower, but as the day progressed, market participants had beaten a hasty retreat over fears of further dovish remarks from the US Fed with defensives such as cyclicals and healthcare leading the charges.

Aside from that, the so-called meme stocks had extended their winning run into a third straight week in a row, as the stocks heavily shorted by Wall Street’s institutional investors, spanned their social media led rally with Aethlon Medical surging as much as 388.2 per cent, while a Reddit stock discussion group-led retail buying frenzy helped lift shares’ prices of prison operator GEO Group alongside World Wrestling Entertainment.

GEO Group added gained per cent, as World Wrestling Entertainment added 10.9 per cent.

Wall St. ends lower ahead of key inflation data

Citing statistics, in the day’s Wall Street closing bell, trade-sensitive Dow dwindled 0.44 per cent to 34,447.14 and S&P 500 ended 0.18 per cent lower to 4,219.55 after flirting with record highs earlier in the session, while tech-heavy Nasdaq lost 0.09 per cent to 13,911.75.

Meanwhile, addressing to a circumspect market landscape, Chief Executive of Horizon Investment Services in Hammond, Indiana, Chuck Carlson said, “There's a lull period in terms of news. We're through earnings period and people are waiting for inflation numbers tomorrow, so you have a mixed market where the major averages aren't doing much of anything.