Wall Street ends in balance as US inflation figures are awaited
The New York Stock Exchange ended a volatile session on Tuesday, with the Nasdaq plunging into negative territory after the governor of the Bank of England hinted that efforts to stabilize the UK bond market would end on Friday, while the Dow Jones rebounded and the S&P 500 remained flat in balance.
Markets started the session on a negative note, driven by concerns about growth and financial stability. This last point was driven by the Bank of England’s (BoE) new intervention in the market, which stated that it would buy indexed gilts from 11 to 14 October to address market dysfunctions and prevent liquidations.
Fears of a slowdown were fueled after the IMF lowered its forecast for 2022 from 2.9% to 2.7%, saying the worst was yet to come. In addition, reports have indicated that China has imposed new restrictions in some Chinese cities due to rising Covid cases.
The Dow Jones (+0.1%) advanced modestly and outperformed early thanks to Amgen (+5.7%), which was reclassified by Morgan Stanley from “Equal-Weight” to “Overweight”. Small- and mid-cap stocks also fared better, with the Russell 2000 (+0.1%) and the S&P Mid Cap 400 (+0.2%) posting modest gains. For the S&P 500, only four of the eleven sectors closed in positive territory, led by real estate (+1.0%). Communication services (-1.6%) and information technology (-1.5%) lagged behind.
S&P 500 Daily Price Chart – Key Levels