Wall Street Rally On Pause As Stocks Fall

Wall Street's record rally petered out on Wednesday, and stocks elsewhere slid as the banning of China Telecom from the United States and Germany's growth outlook downgrade weighed on sentiment

London, (UrduPoint / Pakistan Point News - 27th Oct, 2021 ) :Wall Street's record rally petered out on Wednesday, and stocks elsewhere slid as the banning of China Telecom from the United States and Germany's growth outlook downgrade weighed on sentiment.

Both the Dow and S&P 500 edged up at the opening bell from their record closes, but then fell back.

"The restraint is owed partly to a belief that the stock market seems ripe for a consolidation period after a huge move this month," said Briefing.com analyst Patrick J. O'Hare.

"The lacklustre action yesterday -- after more good earnings news -- was a testament to that belief," he added.

Wall Street, and global markets generally, have rebounded from drops in September when investors took fright at surging inflation and the prospect of tighter monetary policy.

A strong corporate earnings season has provided some much-needed support to investors in recent weeks as companies showed resilience in the face of supply snarls, surging commodity and wage costs, as well as spiking Covid-19 cases.

But long-running friction between Washington and Beijing continues to cast a dark shadow over trading floors, with the two sides locked in a stand-off over a range of issues including Taiwan, national security, technology, trade and Hong Kong.