On Monday, all three key indices of Wall St. had rounded off the session in a downbeat tenure, as investors grew wary ahead of third-quarter earnings’ season and a multi-year high energy prices had dampened investors’ appetite.
Apart from market participants’ angst over third-quarter earnings’ season, a global-scale supply chain crisis had added to further strains. Nonetheless, as Wall Street’s third-quarter earnings’ season has been scheduled to kick off on Wednesday and JPMorgan Chase & Co would be the first to spill out quarterly earnings’ results, financials had borne the heaviest brunt in the day’s choppy trading session.
In factuality, with another quarter of strong growth momentum having been widely anticipated, investors’ wariness over latest earnings’ season had illustrated a growing concern on plausible impacts of a growing inflationary pressure alongside supply disruptions over corporate earnings.
Wall Street falls ahead of Q3, 2021 earnings’ season
Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow tottered 0.72 per cent to 34,496.06 and benchmark S&P 500 shed 0.69 per cent to 4,361.19, while tech-heavy Nasdaq was nudged 0.64 per cent to 14,486.20.
Aside from that, Wall Street analysts were expecting a 29.6 per cent increase in S&P 500-listed companies on an annualized basis during third quarter, IBES data from Refinitiv had unveiled on Friday. Meanwhile, referring to expectations over a positive earnings’ season, a head of equity strategy at Wells Fargo Securities in New York, Christopher Harvey said, “If you're a larger company, you're able to mitigate a lot of these issues.
Managements have been very cognizant of their budgets and not sacrificing margins. Plus, demand remains strong”.