Wednesday, October 20, 2021

Dow gains amid S&P 500, inflation concerns, debt limit debate

NEW YORK – Wall Street ended in a partial rebound from the previous day’s wide sell-off on Wednesday, with Federal Reserve Chairman Jerome Powell’s remarks and the ongoing debt ceiling debate keeping a lid on gains.

The S&P 500 Index and the Dow Jones Industrial Average advanced, but the Nasdaq Composite closed lower as the Treasury yield halted its climb. Investors, seeking stability in a volatile market, headed for the defensive.

All three remain on course to post monthly declines, with the Belvedere S&P 500 pulling off a seven-month winning streak.

“That’s the story we’ve seen for a couple of weeks,” said Oliver Purse, senior vice president at Wealthspire Advisors in New York.

“Investors are concerned about three things: the final taper of bond purchases by the Fed, ongoing inflation with Chairman Powell saying it is going to last longer than initially expected, and the debt ceiling issue Congress is battling. Is.”

Speaking at an event at the European Central Bank, Powell expressed his dismay over persistent supply chain crises that could prop up inflation for longer than expected.

This statement of his has strengthened the stock market.

“Powell has been very good at officially delivering the news that everyone knows is coming,” Perse said.

With growing concerns over US credit defaults, wrangling continued on Capitol Hill over funding to the government as of Friday’s deadline to halt the shutdown.

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US Treasury yields stalled in recent days after a debt limit dispute surfaced in Washington.

The Dow Jones Industrial Average rose 90.73 points, or 0.26 percent, to 34,390.72; The S&P 500 rose 6.83 points, or 0.16 percent, to 4,359.46; And the Nasdaq Composite fell 34.24 points, or 0.24 percent, to end at 14,512.44.

Among 11 key sectors in the S&P 500, materials suffered the biggest percentage declines, with utilities leading the way with a 1.3 percent gain.

The Boeing Company provided Dow the biggest lift after China’s aviation regulator’s successful 737 MAX test. Shares of Planmaker rose 3.2 percent.

It jumped 16.5 percent after discount retailer Dollar Tree Inc. increased its buyback authorization from $1.05 billion to $2.5 billion.

Drugmaker Eli Lilly & Co gained 4.0 percent on Citigroup’s rating upgrade from “neutral” to “buy.”

Advancing issues declining the 1.26-to-1 ratio on the NYSE; On the Nasdaq, the 1.34-to-1 ratio favored the decline.

The S&P 500 posted seven new 52-week highs and two new lows; The Nasdaq Composite posted 38 new highs and 151 new lows.

Volume on US exchanges stood at 11.42 billion shares, compared to an average of 10.45 billion over the past 20 trading days.

by Stephen Culp

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This News Originally From – The Epoch Times

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