September 19, 2021

The World Stock Markets Tips & Targets, News, Views & Updates

The World Stock Markets Tips & Targets, News, Views & Updates

Wall Street slips as tax uncertainty outweighs easing inflation worries

indexes fell on Tuesday on uncertainty over a possible increase in corporate taxes, even though slowing growth in monthly consumer prices eased some fears of the Federal Reserve reducing stimulus early.

Sectors including energy (.SPNY) and financials (.SPSY) pulled back from their strong gain in the previous session and were the worst performers in early trading.

Major technology stocks continued to lag their broader peers and U.S.-listed Chinese firms dropped further as investors remained wary of regulatory shocks from Beijing.

Focus is now on the potential passage of U.S. President Joe Biden’s $3.5 trillion budget package, which is expected to include a proposed corporate tax rate hike to 26.5% from 21%. read more

A possible hike in corporate taxes is yet another uncertainty, along with recent concerns over slowing economic growth due to rising COVID-19 cases.

Meanwhile, data from the Labor Department showed underlying consumer prices rose at their slowest pace in six months in August, suggesting that had probably peaked. July’s reading had also shown a slight slowdown in price increase. read more

But consumer price is still at high levels. Along with strong producer prices last week and some discord among Fed members over when to begin tapering, it meant investors were still uncertain over the policy shift.

“It doesn’t force the Fed’s hand, so there’s a possibility that the Fed could drag its feet and when they do announce tapering, it may be smaller than what the Street may be looking for that time,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.

“I’m not thinking that they do any tapering in September, but I’m not sure where their heads are all at. If it’s up to (Fed Chair) Powell, he’ll wait till November. But other Fed members seem to be on different pages.”

At 10:12 a.m. ET, the Dow Jones Industrial Average (.DJI) fell 110.28 points, or 0.32% , to 34,759.35, the S&P 500 (.SPX) lost 9.54 points, or 0.21 %, to 4,459.19 and the Nasdaq Composite (.IXIC) lost 4.14 points, or 0.03 %, to 15,101.35.

Market participants now expect a substantial correction in stock by the end of the year, with some investors turning bearish on a global economic recovery. read more

Among individual stocks, CureVac fell more than 3% after the German biotechnology firm canceled manufacturing deals for its experimental COVID-19 vaccine with two prospective partners, after rivals with approved shots boosted production. read more

Declining issues outnumbered advancers by a 1.4-to-1 ratio on the NYSE and by about a 1.5-to-1 ratio on the Nasdaq.

The S&P 500 posted 2 new 52-week highs and one new low while the Nasdaq recorded 44 new highs and 42 new lows.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Share This :