US Market falls on profit taking

20 Oct 2022 , 09:25 AM

The US stock market finished session lower on Wednesday, 19 October 2022, as investors opted to book profit made in previous two sessions, amid a sharp rise in Treasury yields. Meanwhile, Lingering concerns about higher interest rates and the impact on the global economy also continued to weigh on the markets. However, market losses capped, thanks to another batch of better-than-expected third quarter corporate earnings reports from companies like Netflix, Procter & Gamble, Travelers, and United Airlines. At the close of trade, the Dow Jones Industrial Average index fell 100 points, or 0.33%, to 30,423.81. The S&P500 index declined 24.82 points, or 0.67%, to 3,695.16. The tech-heavy Nasdaq Composite Index decreased 91.89 points, or 0.85%, to 10,680.51. Earnings season is off to a solid start, but Treasury yields remained elevated on Wednesday, suggesting that recession fears are still intact. The 10-year Treasury yield traded as high as 4.136%, the highest level since July 23, 2008. Markets expect the Fed to deliver another 75 basis point increase in November and the odds are rising that they could do that again in December. ECONOMIC NEWS: The Federal Reserves Beige Book report showed that economic activity in the U.S. has expanded modestly since early September, although the report noted conditions varied across industries and districts. The Fed said four districts saw flat activity and two cited declines, with slowing or weak demand attributed to higher interest rates, inflation, and supply disruptions. Among Indian ADR, Dr Reddys Labs fell 2.6% to $51.67, HDFC Bank dropped 0.9% to $59.72, Tata Motors dropped 2.2% to $23.76, ICICI Bank declined 1.5% to $21.57, Azure Power Global dropped 0.6% to $5.10, and WNS Holdings shed 1.7% to $83.07. Wipro fell 1.3% to $4.52 and INFOSYS was down 1.3% at $17.83. Powered by Capital Market – Live News