Wall street settles mixed, while S&P 500 hits a new record
Wall Street closed mixed on Thursday. The NY stock market began the session with doubts after IBM’s technology did not reach the revenue experts expected. However, the S&P touched a record figure driven by the strong business results delivered by Tesla and other companies.
The Dow Jones shed a slight 0.02% or 6.26 points, to 35,603.08. The selective S&P 500 increased by 0.30% or 13.59 points, to a record 4,549.78. Meanwhile, the Nasdaq rose by 0.62% or 94.02 points, to 15,215.70.
The re-emergence of risk aversion also fuels concerns about the impact of disruptions in global supply chains on companies’ financial accounts.
Investors are watching the forecasts of companies facing rising costs, labour shortages, and supply difficulties.
The Dow Jones and S&P 500 are close to their all-time highs, prompting the market to be cautious.
Inflation affecting on stock returns
Jobless claims in the US dropped during the week ending October 16. It totalled 290,000 compared to 296,000, recorded the previous week.
Tesla announced record revenue and earnings in its third quarter of the year on Wednesday. It led the S&P 500 to stand 0.2% above the highs reached last August.
Jim Paulsen, a representative of the Leuthold Group, stated market movements explained how high inflation is affecting profit margins. Investors are reasonably concerned with reports and the pressure inflation is causing. Still, high inflation seems to push the S&P 500 to the record highs.
By sectors, non-essential consumer goods companies posted the highest increase, adding 1.38%. Meanwhile, the healthcare sector gained 0.44%, technology increased by 0.41%, and telecommunications advanced by 0.36%.
The energy sector was the biggest loser, sliding by 1.81%. At the same time, financial companies slipped by 0.35%, and raw materials lost 0.23%.
Nike registered the biggest advance among the 30 leading companies listed on the Dow Jones and expanded by 2.28%. The United Health Group followed it with a rise of 1.68%. Meanwhile, IBM plummeted by 9.56%, the biggest drop in the group. Chevron, American Express, and Caterpillar were also among the losers.
