Wall Street treads water after post-election rally

November 8, 2018 | By | Reply More

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Traders work on the floor of the New York Stock Exchange (NYSE) on August 1, 2017 in New York City. (AFP pic)

NEW YORK: Wall Street stocks mostly sagged at the start of trading on Thursday, eroding gains from the prior day’s post-election relief rally.

Investors were also awaiting the US Federal Reserve’s latest decision on monetary policy due out at 1900 GMT.

The central bank is not expected to raise interest rates but markets will be looking for signals about the pace of tightening next year.

About 10 minutes into the day’s trading, the benchmark Dow Jones Industrial Average was flat at 26,183.86.

The broader S&P 500 slipped 0.2% lower to 2,809.51, and the tech-heavy Nasdaq had given up half a percentage point, falling to 7,533.57.

Wall Street gained about 2% on Wednesday as investors absorbed the split decision from this week’s elections — which analysts say means there is little chance of major a rollback of business-friendly tax cuts and regulations.

Attention now returns to economic fundamentals, including higher lending rates.

“There is also some reorientation this morning around the important idea that rising interest rates should have more impact on stock prices than legislative dealings in DC that are going to be in limbo until the new split Congress is seated in January,” Patrick O’Hare wrote at Briefing.com.

Qualcomm fell 7.8% after cutting its first-quarter earnings guidance on Wednesday.

Investors are also waiting for quarterly earnings from Disney after the close of trading.

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