Wall St. closes mixed on downbeat economic data but Dow spans record-setting rally



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Wall St. closes mixed on downbeat economic data but Dow spans record-setting rally

On Tuesday, a slew of key indices of Wall St. had closed out the session in an ambivalent tenure, though trade-sensitive Dow extended its record-setting rally into a second successive day as financials alongside industrial shares gained across the board over anticipations that US Federal Reserve would hike its benchmark borrowing cost by 25 bps (basis percentage points) as early as during March policy meet.

Nonetheless, a downward spiral in growth stocks had led to a decline in Nasdaq, while S&P 500 closed out the session almost unchanged. In point of fact, in the day’s steep drawdown in growth stocks was almost entirely catalysed by a deluge of downbeat economic data, as US Commerce Department’s JOLTS report had unveiled that US job openings faltered later last week, while voluntary job quits hit a record 4.5 million amid an insurgence in pandemic outbreak.

Apart from that, an ISM (Institute of Supply Management) report had unveiled that its index for US national manufacturing activities tumbled to the lowest since January, 2021, eventually stoking frets that US factory output could totter over Q1, 2022.

Nevertheless, large gains in crude oil futures’ prices following an OPEC+ decision to hang on to a planned output hike of 400,000 barrels per day from February, helped S&P 500’s energy and industrials sub-indices edge higher, while boosting investors’ optimism further, WHO (World Health Organization) cited an increase in evidences that omicron variant would cause milder symptoms than those of previous variants.

Wall St. ends mixed as growth stocks tumble; Dow hits record

Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow gained 0.58 per cent to an all-time high of 36,798.53 and benchmark S&P 500 shed 0.06 per cent to 4,793.39, while tech-heavy Nasdaq was nudged as much as 1.33 per cent lower to 15,623.25.

Meanwhile, addressing to a heavy battering of growth stocks in the day’s Wall Street, a director at Per Stirling Capital Management in Austin, Texas, Robert Phipps said, “Investors are going to punish growth stocks with high valuations. This is a time when defensive stocks and value stocks are likely to outperform”.