On Wednesday, a swathe of major key indices in the Wall St. closed out the session in a fairly upbeat tenure with Nasdaq alongside S&P 500 leading the tally of gains, however, Dow rounded off nearly flatlined as investors turned to growth stocks and defensives amid growing inflationary pressure alongside a sustenance in supply chain problems among major US retailers.
In point of fact, in the day’s modest gains in the Wall Street were largely catalyzed by an upsurge in Nvidia shares, which appeared to have overshadowed the steep declines in Gap and Nordstrom following weak quarterly reports.
On top of that, economic data released earlier in the day had unveiled that US weekly initial jobless claims fell to the lowest since November, 1969, marking off a maverick rebound in US economic activity following a relatively rancorous third-quarter, while US consumer spending accountable for a two-third of entire US economic activity, jumped as much as 1.3 per cent in October, helping S&P 500’s consumer discretionary sector index end higher.
Nonetheless, frets of an earlier-than-anticipated rate-hike alongside a quickening of US Fed’s bond taper program, both of which would more likely to prevent a tempting streak of tailwinds in the Wall Street, spurred up further after economic data had unveiled that the US Fed’s key inflation indicator, core PCE price index, rose to 4.1 per cent over past twelve months through October compared to a 3.7 per cent logged a month earlier.
Wall St. ends higher as Nasdaq, S&P 500 gain
Citing statistics, in the day’s Wall St. wind-down, trade-sensitive Dow fell 0.03 per cent to 35,804.38 and benchmark S&P 500 added 0.23 per cent to 4,701.46, while tech-heavy Nasdaq rose 0.44 per cent to 15,845.23.
Meanwhile, addressing to a likely sell-off pressure looming over US equity markets, a Chief Executive at AXS Investments in Port Chester, New York, Greg Bassuk said, “Equities are under pressure from a combination of rising interest rates, more cautionary news on the earnings front, and, also from COVID developments in Europe”.