Wall Street post modest gains – S&P 500 index breaks 3-day bearish streak

October 14, 2021 - 1 week ago
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U.S. stocks bobbed and weaved before ending Wednesday’s session on a mixed tone as investors digested third-quarter earnings while shrugging off a hotter-than-expected inflation reading.

At the finishing bell, on the New York Stock Exchange (NYSE), the blue-chip Dow Jones Industrial Average slipped -0.53 points, or less than -0.1%, to 34,377.81.

The broad-based Standard & Poor’s 500 Index added +13.15 points, or +0.3%, to 4,363.80, while the rich-tech Nasdaq Composite Index gained +105.71 points, or +0.7%, to 14,571.64.

Apple shares dipped -0.4% after a news report said it is likely to cut iPhone 13 production because of chip shortages.

Big Tech names Microsoft, Google-parent Alphabet and Amazon rose. Nvidia, Zoom and Salesforce also gained.

The benchmark 10-year U.S. Treasury note yield finished the trading session at 1.549%, down from 1.579% at Tuesday’s close.

Wall Street’s major U.S. indexes closed mostly higher Thursday, with the S&P 500 managing to snap a three-day bearish streak.

Minutes released Wednesday U.S. Federal Open Market Committee’s (FOMC) September meeting showed the central bank could begin tapering its asset-purchase program as soon as mid-November.

U.S. Fed officials agreed at their last meeting that if the economy continued to improve, they could start reducing their monthly bond purchases as soon as next month and bring them to an end by the middle of 2022.

Fresh economic data Wednesday kept inflation concerns in focus after the U.S. Consumer-Price Index showed U.S. inflation accelerated slightly in September, rising a seasonally adjusted 0.4% from the previous month and at a 5.4% annual rate, according to the U.S. Labor Department.

Economists had forecast a 0.3% rise from August and a 5.3% annual rate.

Excluding energy and food, the core CPI rose 0.2% month over month and 4% over the last 12 months, against respective estimates for 0.3% and 4%.

On Thursday, investors now await earnings reports from Bank of America, Morgan Stanley, Citigroup, Wells Fargo and Walgreens Boots Alliance.

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