Wall Street ends in balance while awaiting US inflation figures
The New York Stock Exchange ended a volatile session on Tuesday with the Nasdaq dipping into negative territory after the Governor of the Bank of England hinted that efforts to stabilize the UK bond market would cease on Friday, while the Dow Jones rebounded and the S&P 500 remained in balance.
Markets started the session on a negative note, driven by concerns about growth and financial stability. This last point was fueled by the new intervention of the Bank of England (BoE) in the market, which declared that it would buy indexed gilts from October 11 to 14 in order to alleviate market dysfunctions and to prevent liquidations.
Slowdown fears were fueled after the IMF lowered its forecast for 2022 from 2.9% to 2.7% and said the worst was yet to come. Additionally, reports have indicated that China has imposed new restrictions in some Chinese cities due to rising Covid cases.
The Dow Jones (+0.1%) posted a modest gain, outperforming early on thanks to Amgen (+5.7%), which was reclassified by Morgan Stanley from “Equal-Weight” to “Overweight”. Small and mid cap stocks also outperformed, 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