Wall Street totters, ends record-setting rally as inflation worries swamp market



by   |  VIEW 1777

Wall Street totters, ends record-setting rally as inflation worries swamp market

On Tuesday, all three key indices of Wall St. had edged lower, winding down a multi-day long record-setting rally amid a profit-taking frenzy as US Fed chair Powell alongside two of the US Federal Reserve's most dovish policymakers, Minneapolis Fed President Neel Kashkari and Chicago Fed President Charles Evans had underscored ‘mixed signals’ in US economic recovery, while a solid rise in US Producer Price Index in October with Wednesday’s CPI (consumer price index) data on the card, seemingly had weighed heavily on investors’ morale.

Apart from that, a severe drag in Tesla stocks, which had shrugged off over $200 billion in market cap over past two sessions, had taken a larger-than-anticipated toll on Wall Street bellwether S&P 500 and tech-heavy Nasdaq, as Tesla Inc shares had reported their worst intra-session plunge in more than fourteen months.

Tesla Inc shares have been facing off a mass-scale sell-off wave after the EV industry trailblazer co-founder and Chief Executive Elon Musk had told over the weekend that he would sell off a 10 per cent of his Tesla stakes citing a US Congress taxation bill targeting billionaires.

In tandem, earlier in the day, US Labor Department data had unfurled that US producer price index (PPI) jumped 0.6 per cent in October with September and August PPI data revised higher to 0.5 per cent and 0.7 per cent, stoking frets of a further increase in inflation indicators amid the US Federal Reserve’s cynical and utterly market-oriented ‘transitory’ inflation remarks.

Investors will look towards Wednesday’s Consumer Price Index (CPI) data, which is expected to climb 0.4 per cent higher in October according to an analysts’ estimate.

Wall Street breaks off losing-run after multi-day record-setting rally

Citing statistics, in the day’s Wall St.

wind-up, trade-sensitive Dow dwindled 0.31 per cent to 36,319.98 and benchmark S&P 500 shed 0.35 per cent to 4,685.25, while tech-heavy Nasdaq was nudged as much as 0.60 per cent lower to 15,886.54. Meanwhile, citing a profit-taking wave ahead of Wednesday’s US inflation data (CPI), a chief market strategist at LPL Financial in Charlotte, North Carolina, Ryan Detrick said, ”We've had an incredible run, so letting some air out of the balloon is perfectly normal.

It's a reminder that stocks can’t go up every day. We’re seeing some oversold weakness today, nothing overly concerning."