Wall St. closes choppy week sharply lower as S&P ends below 50-day moving average

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Wall St. closes choppy week sharply lower as S&P ends below 50-day moving average

On Friday, a slew of Wall St. stocks’ indices had closed out the session in a red sea of Nile with all three key indices taking a tattering header over the week, rounding off a week that was largely pivoted by a plausible shift in US Fed’s asset purchase tapering timeline, while worries over a notable rise in corporate taxation and a persistent lag in labour market amid a rise in delta cases had added to further holocaust.

On top of that, US Government data had revealed on Thursday that US retail sales rose unprecedentedly by 0.7 per cent in August compared to a forecast of a decline of 0.8 per cent, eventually building up a solid case for a number of Fed policymakers supporting a near-term taper in asset purchase program ahead of a US Federal Reserve policy meet next week.

Besides, leading US Democratic lawmakers backing up a corporate tax hike to 26.5 per cent from a present 21 per cent, had added to further woes, leading to a steep decline in growth stocks with S&P 500 slipping below its 50-day moving average, while rising Treasury Yields had suppressed tech-heavy Nasdaq with 10-year US Treasury bond notes winding up the week at 1.36 per cent.

Adding further strains, benchmark S&P 500 ended up the session below its 50-day moving average, a technical indicator that usually follows further declines.

Wall St. ends sharply lower ahead of Fed policy meet

Citing statisitcs, in the day’s Wall St.

closing bell, trade-sensitive Dow dwindled 0.48 per cent to 34,584.88 and Wall Street bellwether S&P 500 had been hit with a hefty whiplash of 0.91 per cent to 4,432.99, while tech-heavy Nasdaq had shrugged off 0.91 per cent to 15,043.97.

On the week, Dow fell 0.23 per cent and S&P 500 slipped 0.93 per cent, while Nasdaq was nudged as much as 1.10 per cent lower. Meanwhile, addressing to investors’ worries about a plausible rise in corporate taxation alongside strong economic data vindicating a shift in the US Fed’s tapering of fiscal support, a chief investment officer at Lenox Wealth Advisor in New York, David Carter said, “The market is struggling with prospects for tighter fiscal policy due to tax increases, and tighter monetary policy due to Fed tapering.

Equity markets are also a little softer due to today's weak Consumer Sentiment data. It's triggering concerns that the Delta variant could slow economic growth”.