Risk-on mood fizzles amid mixed clues

  • The Dow Jones Industrial Average dropped 173.77 points, or 0.58%.
  • The S&P500 eased 5.76 points, or 0.16% after probing the record top.
  • The Nasdaq Composite gains 57.08 points, or 0.47%.

Having witnessed a few consecutive days of optimism, the US equity bulls catch a breather on Wednesday. The reason could be spotted from mixed US data as well as fears of the coronavirus (COVID-19) amid no major positives from President-elect Joe Biden.

Read: Forex Today: Dollar´s weakness continues

Dow Jones Industrial Average (DJI30) stepped back from record high while closing around 29,872.47 whereas S&P 500 fades upside momentum to challenge the all-time top while being mildly offered near 3,630 by press time. Even so, Nasdaq 100 benefited from the upbeat performance in tech shares, up nearly half a percent to 12,094.40.

Despite the dense economic calendar, the North American traders couldn’t cheer any of the headline figures as the preliminary Q3 GDP eased a bit to 33.1% from 33.2% forecast while Weekly Jobless Claims surged. Further details suggest that the Durable Goods Orders grew more than 0.9% forecast to 1.3% in October whereas Michigan Consumer Sentiment weakened to 76.9 from 77.00 prior and expected. It’s worth mentioning that the FOMC Minutes also failed to keep the bulls happy while highlighting December meeting as the key.

Talking about the risk catalysts, the global COVID-19 infections grew past-60 million with the surge in the US hospitalization being a major concern. The absence of fresh developments at the vaccine front also tamed the market bulls.

Elsewhere, Biden and company are yet to comment anything stronger to keep the market optimistic while chatters concerning extended lockdown in Germany and Brexit woes join the US sanctions over four companies, from China and Russia, concerning Iran missile program, to heavy the risks.

That said, traders will have a few catalysts during the early Thursday and hence the market sentiment is likely to remain sluggish. Though, surprises can’t be ruled out from the risk news like US politics, covid and vaccine.

Source link

Add a Comment