Wall Street drifted to a mixed finish on Tuesday, as the latest signals indicate that the US economy remains solid, although it may be too strong for the Federal Reserve’s preferences.
- The S&P 500 showed a slight decline of 0.43, which is less than 0.1%, closing at 4,373.20 after fluctuating between small gains and losses throughout the day.
- The Dow Jones Industrial Average added 13.11 points, or less than 0.1%, closing at 33,997.65.
- The Nasdaq composite fell 34.24, or 0.3%, closing at 13,533.75.
Financial markets have experienced instability in recent weeks due to concerns about the Middle East conflict and its potential impact on oil prices. However, these concerns have subsided to refocus on the factors that typically influence long-term movements in the stock market: interest rates, the economy, and corporate profits.
A report released on Tuesday revealed that US retailers received higher spending from shoppers last month than economists had anticipated. This indicates a healthy economy, likely due to a stable job market that should support company profits. However, an overheating economy could fuel inflation and prompt the Federal Reserve to maintain high interest rates to curb it. Such a move would harm stock and other investment prices. On Tuesday, Nvidia experienced a 3.2% drop, while Apple slipped 0.9%, becoming the two main contributors to the S&P 500’s decline.
Nividia and other chipmakers faced additional pressure after the US government expanded restrictions to prevent China from acquiring advanced computer chips and manufacturing equipment. Bank of America led the market with a 2.3% gain after surpassing Wall Street’s profit expectations for the third quarter. Bank of New York Mellon also saw a 3.8% rise after reporting stronger-than-expected profits for the latest quarter. Wyndham Hotels & Resorts rose by 9% following a statement from rival Choice Hotels International expressing interest in acquiring the company for $90 per share in cash and stock, valuing it at $7.8 billion. However, Choice Hotels’ shares fell 6.8%.
(Read more stock market stories.)
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
