December 9, 2022

Ferrum College : Iron Blade Online

Complete Canadian News World

The S&P 500 closed lower on Wednesday after two days of solid gains

The S&P 500 closed lower on Wednesday after two days of solid gains

US stocks fell on Wednesday as Wall Street failed to sustain sharp gains from the past two sessions.

The Dow Jones Industrial Average lost 42.45 points, or 0.14%, to 30,273.87 points. Earlier today, it was down 429.88 points. The S&P 500 lost 0.20% to close at 3783.28, and the Nasdaq Composite fell 0.25% to 11148.64.

“It’s a moment to pause for the market to consider how long the rally has continued over the past couple of days,” said Young Yu Ma, chief investment analyst at BMO Wealth Management. “The market is evaluating that it will take a lot for the Fed to make a complacency. Yes, number of tremors It was very welcome, no doubt about that. But this is actually the tip of the iceberg in terms of what the Fed needs to take a softer stance.”

“There is some truth creeping into the market and the enthusiasm of a large number is fading,” he added.

Stocks saw a big rally earlier in the week, with the S&P 500 posting its biggest two-day gain since 2020, as bond yields tumbled from multi-year highs. Wednesday, Revenues rose sharply, with the 10-year Treasury rate above 3.7% after briefly dropping below 3.6% in the previous session. This put pressure on the stock for much of the day.

In its latest report, the ADP said private payrolls increased by 208,000, topping Dow Jones estimates. Traders are looking forward to Friday’s non-farm payrolls report. On Wednesday, the ISM services index for September was also released Shows strong growth.

Some market participants questioned whether the markets had finally bottomed out after the sharp declines in the previous quarter.

See also  Get an anti-inflation bond that pays 9.62 percent while there's still time

“The third-quarter earnings reports are not too far off, and the market psychology is certainly that the second-quarter earnings season helped stabilize the markets,” Ma said. “There was a lot of pessimism in the market that was able to recover quite strongly a couple of months ago. There is now also hope that earnings season can stabilize the market and maybe come to the rescue again, the way it did last quarter.”

Lea la cobertura del mercado de hoy en español aquí.