Wall Street dips on rate hike uncertainty; Visa weighs on Dow

- Advertisement -


(Businesshala) – Wall Street indexes fell on Wednesday as investors fretted over early rate hikes by the Federal Reserve following strong retail earnings, while Amazon said it would stop accepting operator-issued cards in the UK .

FILE PHOTO: People are seen on Wall Street outside the New York Stock Exchange (NYSE) in New York City, US, March 19, 2021. Businesshala/Brendan McDermid/File photo

Target Corp was the latest big-name retailer to report positive results, as it raised its annual forecasts and beat profit expectations, citing an early start to holiday shopping.

- Advertisement -

But shares of the firm fell 5.2% on Tuesday, tracking a decline in peer Walmart, as both retailers flagged a hit to their third-quarter margins from supply chain issues.

Lowe’s Cos Inc. rose 0.8% after the home improvement chain raised its full-year sales forecast on a strong U.S. housing market, along with higher demand from builders and contractors. Peer Home Depot also posted strong results on Tuesday.

Visa Inc. fell 5.4% and Amazon.com Inc. said it would stop accepting firm-issued credit cards in the UK from next year due to higher fees for transactions.

Losses on the Nasdaq were moderated by major technology stocks, which tend to gain in times of high market uncertainty.

While strong retail data this week showed that the rise in inflation has not hit economic growth so far, investors feared further price hikes could hurt growth and prompt the Federal Reserve to prematurely tighten policy. can be pushed in.

“The inflation scare is still there and what those are discussing – is it transitory, is it supply driven – is still in the market,” said Joe Saluzzi, co-manager of trading at Themis Trading. Chatham, New Jersey.

“For as long as the Fed can… but if[inflation]continues to go high, and you continue to see inflationary pressures, it becomes a question of how much and how often[rates]will rise.” “

Contrasting comments from Fed chairmen James Bullard and Mary Daly on Tuesday also created further uncertainty in the markets.

Strong retail earnings this week will kick off a third-quarter earnings season that pushed the Wall Street index to record highs.

Investors were waiting for Nvidia Corp’s third-quarter results after the bell. Shares of the chipmaker fell 0.7% but were trading well below record highs.

The Philadelphia Semiconductor Index also fell below its all-time high.

At 11:52 am, the Dow Jones Industrial Average was down 169.37 points, or 0.47%, at 35,972.85 and the S&P 500 was down 5.24 points, or 0.11%, at 4,693.45. The Nasdaq Composite was largely unchanged at 15,974.11.

Tesla rose 3.8% amid rising demand for EV stocks on Wall Street, while Peer Canu added 7.0%.

But Rivian Automotive Inc. tumbled 16.4%, as investors benefited from a nearly 71% winning streak since the stock’s listing last week.

There has been an increase in the number of issues declining to a 2.41-to-1 ratio on the NYSE and to a 2.29-to-1 ratio on the Nasdaq.

The S&P index recorded 30 new 52-week highs and five new lows, while the Nasdaq posted 78 new highs and 169 new lows.

Reporting by Amber Warik and Devik Jain in Bengaluru; Editing by Maju Samuel

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox