Wall Street saw its first loss in over a week on Wednesday as technology stocks contributed to the market’s decline. The S&P 500 fell 0.4 per cent. The benchmark index’s seven-day winning streak was ended by the loss.
After five gaining sessions, the Dow Jones Industrial Average experienced its first loss, falling 0.3 per cent. The Dow and S&P 500 are still close to the records they set on Tuesday. The technology stocks that make up a large portion of the Nasdaq composite saw a 0.6 per cent decline.
The S&P 500
The broad representation of the US stock markets comprising of 500 top companies, the S&P 500 lost its seven-day streak of closing on higher note on the wall street. After the Trump bump faded away from the market al the marquee indices saw a healthy correction after which they took a course correction and started their upward movement which eventually led all the indices with new record high levels.
The S&P 500 was controlled by bearish investors and traders which pushed the index to its day low level of 5,984.87 points, after hitting the opening at 6,014.11 in the negative territory with low confidence, the index kept on slipping further in the negative territory, showing no signs of recovery, the S&P 500 concluded the trading session at 5,998.74 points, tumbling down almost 0.38 per cent amounting to 22.89 points.
Nasdaq Composite
Nasdaq composite which stands as a benchmark for tech market of the US; comprising of tech titans like Nvidia, Microsoft along Amazon and members of the magnificent seven pack. The tech representative index also followed leaders and bearish investors took over for the entire streak. After the Trump bump, tech stock saw a rally that propelled the index from 18,179 points to 19,269 points in four trading sessions.
In the last trading session, the tech index opened with low confidence at 19,132.99 points, before hitting the day low level of 18,937.20 points. Last trading session brought a halt to the rally tailing the correction that came after the US presidential election propelled the index to its new record high levels. The index concluded the trading session at 19,133.11 points.
Dow Jones Industrial Average
The oldest index on the US bourses, showed a little confidence after opening bell, but the index quicky turned around, feeling pressure from other leaders and went further into negative territory which led the index to lose all the confidence and trade well into the red territory.
The Dow jones opened with little more optimism than others leaders at 44,837.75 points, went on to touch the day high level of 45,003.06 points, zooming about 200 points in the green territory, broader market was creating pressure which led the down jones to lose all the gains of morning and touch the day low level of 44,690.23 points. The index concluded the trading session at 44,722.06 points.
Consumer spending data
The Commerce Department maintained its initial estimate of third-quarter growth, stating that the U.S. economy grew at a robust 2.8 per cent annual pace from July to September. Strong consumer spending and a spike in exports were the main drivers of the growth.
The update came after the Conference Board released a report on Tuesday indicating that consumer confidence in the United States increased in November.
Inflation data
In large part, since it peaked over two years ago, the rate of inflation has been declining. In June 2022, the PCE, the Fed’s preferred inflation indicator, was slightly less than 7.3 per cent. Concurrently, the consumer price index, another indicator of inflation, reached a peak of 9.1 per cent.
According to the most recent inflation data, however, the rate of inflation appears to be stalling as it approaches the Fed’s 2 per cent target. By mid-2023, the central bank had raised its benchmark interest rate from almost zero in early 2022 to a two-decade high, and it remained there to control inflation.
Federal Reserve could rethink next rate cut
Donald Trump, the president-elect, has stated that when he assumes office in January, he intends to enact extensive new tariffs on China, Canada, and Mexico. That might cause a shock to the economy by driving up the cost of many different items and speeding up inflation. A change like this might make the Fed reconsider its next interest rate cut.
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