Business

As Powell tapers, Wall Street’s key index goes down

The trader works on the floor of the New York Stock Exchange (NYSE) in New York City, USA on October 20, 2021. REUTERS / Brendan McDermid

October 22, 2021

By Shreyashi Sanial and Devik Jain

(Reuters) – The Dow and S & P 500 reversed the course to fall on Friday, but the market where comments from Federal Reserve Chairman Jerome Powell on tapering stimulus are trading at record levels. After being surprised, the Powell fell by more than 1%.

The Dow and S & P 500 set a new record early in the session with positive returns from American Express. Powell then said the US central bank was “on track” to begin reducing asset purchases.

Randy Frederick, Managing Director, said: Charles Schwab Trading and Derivatives Overview in Austin, Texas.

The benchmark S & P 500 index is set for the third straight week of growth, rising about 1.4% this week.

Seven of the 11 major S & P 500 sector indexes were still high by early afternoon, but the telecommunications services sector fell by more than 2% due to the slump in social media giants.

Facebook Inc fell 5.7% and Twitter Inc fell 4.4% after Snap Inc said that Apple Inc’s privacy changes on iOS devices would undermine its ability to target and measure digital ads.

Snap plunged 25.3% in the news, questioning next week’s quarterly reports from Facebook and Twitter, a social media company that relies heavily on advertising revenue.

Todd Lowenstein, Chief Equity Strategist at Union Bank’s private bank, said:

“Currently, investors hate uncertainty. If things are uncertain, it creates volatility and investors question some of the investments around some of these companies.”

American Express Co surged 4.9%, the largest increase as it surpassed the Dow Jones Industrial Average for the fourth straight quarter.

Intel Corp plunged 11.2% as it fell short of third-quarter sales expectations. Meanwhile, CEO pointed out a shortage of chips that hindered sales of flagship processors.

Supply chain concerns, inflationary pressures and labor shortages are at the forefront of the third quarter earnings season.

Analysts expect S & P 500 revenue to grow 34.8% year-on-year, up from 31.9% at the beginning of the week, according to Refinitiv data.

At 11:59 am ET, the Dow Jones Industrial Average fell 19.18 points (0.05%) at 35,583.90, the S & P 500 fell 17.70 points (0.39%) at 4,532.08, and the Nasdaq Composite Index fell 159.06 points (1.05%). Did. , 15,056.64.

Data show that while labor and raw material shortages hindered manufacturing, the COVID-19 infection subsided, accelerating US business activity in October.

The New York Stock Exchange has a 1.22 to 1 ratio and the NASDAQ has a 2.07 to 1 ratio, which is more than ahead of schedule. The S & P index recorded 80 new 52-week highs and no new lows, while Nasdaq recorded 116 new highs and 109 new lows.

(Report by Shreyashi Sanial and Devik Jain in Bangalore, edited by Arun Koyyur, Sriraj Kalluvila, Shounak Dasgupta)



As Powell tapers, Wall Street’s key index goes down

Source link As Powell tapers, Wall Street’s key index goes down

Back to top button