Wall St opens lower on blistering producer prices data as Fed decision looms
by SOURAV D | VIEW 1531
On Wednesday, all three key indices of Wall St. had extended their latest leg of losing streak ahead of a Fed policy meet decision scheduled to be released on GMT 19.00 what is widely expected to foster a faster bond-tapering program alongside an earlier-than-anticipated rate-hike. As of the early-morning US trading, trade-sensitive Dow was trading 0.27 per cent lower to 15,886.1, Wall Street bellwether S&P 500 shed 0.21 per cent to 4,629.43, while Nasdaq dropped 0.23 per cent to 15,890.7. Nonetheless, earlier in the day, Government data had unveiled that US retail sales climbed 0.3 per cent in November, falling short of an analysts’ estimate which eventually had weighed on investors’ sentiment, though a stronger-than-expected rise in US inventory build ahead of Christmas and New Year holidays had spurred up hopes of a robust holiday sale, keeping a lid on the losses.
Wall St. extends losses ahead of Fed policy decision
Apart from that, S&P 500 and Nasdaq dropped more than 1 per cent on yesterday, as US November producer prices index (PPI) data had signaled that US inflation indicators would more likely to harbor comfortably at a higher level in a short- to intermediate-term outlook, solidifying views that US Fed would cling on to a faster bond-tapering program in order to put the kibosh on a sky-scrapping US inflation.
On top of that, the rate of transmissibility of Omicron variant had stoked frets of a tidal wave of infection as cited by the British PM Boris Johnson, panning out worries that many countries would meet with an overwhelmed healthcare system.
On Tuesday’s Wall Street closing bell, Dow drowned 0.34 per cent to 35,531.30 and benchmark S&P 500 tumbled 1.10 per cent to 4,617.61, while tech-heavy Nasdaq was nudged as much as 1.78 per cent to 15,139.01. Meanwhile, citing a robust build-up in price-pressure, a chief market strategist at StockCharts.com, David Keller said, “The story for much of 2021, or certainly the last six months has been inflationary signs that have been more and more concerning”.