On Wednesday, a slew of key indices in the Wall Street but tech-heavy Nasdaq had gobbled down hefty losses amid an investors’ gyration towards so-called growth stocks alongside a havoc-scale profit-taking wave, as Microsoft Corp alongside Google-parent Alphabet Inc had fared well following their quarterly earnings’ results, though, more than a 2.0 per cent decline in both Brent and US WTI crude had dragged energy stocks down with a setback on US Treasury Yields, which had extended its losing run into a fourth straight day, weighing down cyclicals and heaving Wall Street bellwether S&P 500 lower. In point of fact, in the day’s doughy declines in major indexes were almost entirely catalysed by a mass-scale profit-taking wave as beforementioned, as market participants seemed to be taking a breather after a stellar run in third quarterly earnings’ season, while Microsoft Corp rose 4.21 per cent to a record closing high after projecting a propitious end of the year, largely buoyed up by its cloud computing business, and Google-parent Alphabet Inc., the online advertisement industry giant, climbed 4.96 per cent after shelving a record quarterly profit amid an upsurge in ad sales.
Wall St. falls amid profit-taking wave
Citing statistics, in the day’s Wall St. wind-down, trade-sensitive Dow faltered 0.74 per cent to 35,490.69 and benchmark S&P 500 lost 0.51 per cent to 4,551.68, while tech-heavy Nasdaq edged 0.12 per cent higher to 15,235.84.
Meanwhile, addressing to US Fed’s tapering of fiscal support with would likely to start off by mid-November, a director of portfolio strategy at Verdence Capital Advisors in Hund Valley, Maryland, Megan Horneman said, “The growthy names will get a boost not just from some of the earnings stuff but because interest rates are lower.
Interest rates are temporarily lower because of the fact that there is some uncertainty from the tax perspective and what that might do. We do know the Fed is going to taper, that has pretty much been priced in but now you have a lot of talk about what the future of the Federal Reserve may look like”.