Wall St. kicks off October with broad rally on strong economic data

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Wall St. kicks off October with broad rally on strong economic data

On Friday, despite a seesaw opening of the session, all three key indices of Wall St. had rounded off the session in an upbeat tenure, setting off the final quarter of 2021 with a buoyant attitude following release of a raft of upbeat economic data, while media toplines citing US President Joe Biden’s involvement over a potential passage of a trillion-dollar infrastructure bill in the Capitol Hill, had sent investors’ optimism to cloud nine a day after witnessing a withering downturn.

Apart from that, Merck & Co., the US-based pharmaceutical had said earlier in the day that a late-stage trial on its oral Covid-19 drug had shown the experimental treatment could halve the risks of hospitalization or death in a demographic facing off a higher risk of severe complications from pandemic contagion, adding to further bullish wind in the Wall Street with Merck shares mounting as much as 12.3 per cent.

As beforementioned, all three key indices in the Wall Street had opened up the day sharply lower, however, media headlines over a key development in the passage of a trillion-dollar infrastructure bill in US Congress, had perked up investors’ optimism, while an increase in US Consumer Spending by 0.8 per cent in August alongside a softer-than-anticipated rise in the US Fed’s benchmark inflation indicator, core PCE (Personal Consumption Expenditure) price index, had prompted a rally in late-afternoon trading hours.

Wall St. gains as strong consumer spending, factory data revive outlook

Citing statistics, in the day’s Wall St. wind down, trade-sensitive Dow climbed 1.43 per cent to 34,326.46 and benchmark S&P 500 surged 1.15 per cent to 4,357.04, while tech-heavy Nasdaq gained 0.82 per cent to 14,566.70.

Meanwhile, referring to a broad-based recovery in the day’s Wall St., a chief investment officer at Lenox Wealth Advisors in New York, David Carter said, “Markets were not fixated today on new taxes or tapering.

In a shift from the past few weeks there's been no big news from Washington, so markets were forced to focus on positive economic data and a new COVID medication”.