NEW YORK, March 4 — Wall Street equities were choppy in early trading, with investors conflicted over the prospects for an economic recovery that could bring inflation with it, and tech shares again taking a hit.
Markets also are keeping their antenna attuned to the production decision by Opec oil producers as well as an appearance by Federal Reserve Chair Jerome Powell, who has repeatedly assured the world there are no interest rate increases in the works anytime soon.
About 45 minutes into the trading session, all three major indices were lower, with the Dow Jones Industrial Average and S&P 500 retreating from early gains.
The Dow was down 0.3 per cent to 31,156.79, and the broad-based S&P 500 dropped 0.8 per cent to 3,791.21.
The tech-rich Nasdaq Composite Index fell 1.6 per cent to 12,788.4, after tumbling sharply in the prior session.
Opec producers meeting today are expected to agree to cut output to shore up crude prices, but analysts caution they might not shut the taps by quite as much as expected.
Markets in recent weeks have focused on rising yields on 10-year US Treasury notes as a worrying signal of coming inflation, which could trigger an increase in borrowing rates as the US economy recovers from the downturn caused by the Covid-19 pandemic.
The 10-year yield slipped back slightly but Patrick O’Hare of Briefing.com said “where it heads from there will help dictate where the major indices head from here.”
Powell has meanwhile committed the Fed to keep rates near zero until inflation consistently remains above 2.0 per cent, and he will appear at an event later Thursday where he is expected to reiterate that message.
US jobless claims data, which increased last week and remain above 700,000, show the labor market recover is improving only slowly.
Digital payments firm Square fell 6.6 per cent after announcing it was buying a controlling stake in the streaming music platform Tidal from a group led by rap star Jay-Z for US$297 million (RM1.2 billion) in cash and stock. — AFP
