Wall St. closes lower on Powell’s faster taper comments, gratuitous Omicron-panic

by   |  VIEW 1457

Wall St. closes lower on Powell’s faster taper comments, gratuitous Omicron-panic

On Tuesday, all three key indices of Wall St. had winded down the session more than 1.0 per cent lower following the US Federal Reserve Chair Jerome Powell’s remarks that the US Central Bank could consider an acceleration in bond-taper program contemplating a sharp uptick in inflation indicators, ratcheting up the heats further on to a US capital market which had already been plagued with a panic-driven sell-off frenzy.

Speaking in a testimony before the US Senate Banking Committee, US Fed’s Powell was quoted saying that a latest leg of staggering upsurge in inflation indicators could not be considered as ‘transitory’ and the Federal Reserve would review the timeframe of its bond-taper program, sending shockwaves across global money markets with TSX hitting a 13-month low.

Meanwhile, addressing to Powell’s latest remark on US inflation outlook, a managing director of equity trading at Wedbush Securities in Los Angeles, Michael James said, “Powell's comments threw a monkey in the wrench in market thinking in terms of potential taper timing.

You're seeing as a result of that, risk-off across the board. You also have to factor in the Omicron variant concerns. You can argue whether they're more headline risk or reality risk but regardless, it's having a significant impact on oil, and everything that's tied to economic growth”.

Wall St. beats a hasty retreat amid broad-based sell-off wind

Citing statistics, in the day’s Wall St. wind-down, trade-sensitive Dow dwindled 1.86 per cent to 34,483.72 and Wall Street bellwether S&P 500 shrugged off 1.90 per cent to 4,567.00, while tech-heavy Nasdaq was nudged as much as 1.55 per cent lower to 15,537.69.

Tuesday’s tottering in the Wall Street, in tandem, had been broad-based with all 11 sub-sectors of S&P 500 wrapping up the day deeper into red inks, while communication services alongside sub-indices exposed to oil prices led the tally of losses.