Wall St. ekes out gains on crude price surge, economic data



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Wall St. ekes out gains on crude price surge, economic data

On Wednesday, a swathe of Wall St. stock indices had wrapped up the session sharply higher, mostly driven by a flamboyant upswing in commodity-linked stocks following a steep uprising in crude oil futures’ prices, while a latest set of data suggesting an ease in US core inflation indicators alongside a rise in delta cases had obscured the hopes of a near-term tapering of fiscal support for the economy, eventually hinging investors back towards value stocks which would likely to be benefitted by the most during a pandemic-era new normalcy.

On top of that, all three key indices of Wall Street had closed out the session sharply higher with benchmark S&P 500 leading the tally of gains amid a strong upsurge in oil-linked stocks, as both US and UK crude futures’ prices rose more than 3 per cent on Wednesday after a US EIA (Energy Information Administration) data had unveiled that US crude inventories had tumbled to their lowest level since September 2019 with the fallouts of Hurricane Ida still shutting-in more than 30 per cent of US Gulf of Mexico crude outputs.

Aside from that, new Government data had unmasked that US inflation indicators had been easing over recent past as predicted by US Fed Chair Jerome Powell, eventually petering out the prospects of a near-term taper-talk, while US Federal Reserve had said earlier in the day that US factory output rose by 0.2 per cent in August, however, July outputs had been revised higher to 1.6 per cent from a prior 1.4 per cent.

Besides, a strong growth in new orders had rekindled the prospects of a higher factory output over fourth quarter of 2021, eventually helping trade-sensitive Dow to score large gains.

Wall St. ends sharply higher as value stocks gain

Citing statistics, in the day’s Wall St.

closing bell, trade-sensitive Dow surged 0.72 per cent to 34,825.25 and benchmark S&P 500 gained 0.80 per cent to 4,478.79, while tech-heavy Nasdaq soared 0.62 per cent to 15,131.72. Meanwhile, addressing to another session of data-centric rotation back to value stocks, a chief investment strategist at Inverness Counsel in New York, Tim Ghrisley, said, “The main factor in that move between growth and value is COVID and the Delta variant and its impact on the economy.

Over time, we've seen the market focus flip flop between these two outlooks for the economy as investors try to grapple with the near-term economic outlook”.