The Dow Jones dipped about 84.03 points to touch 18552.02 and the broader S&P 500 index slid 12 points to touch 2178.15. The technology focused Nasdaq index also slid 34.90 points to rest at 5227.11. William Dudley, President, New York Federal Reserve, said that the central bank could raise the interest rates during its next meeting in September. According to Dudekt, the rate rise at the time of the next meeting of the Federal Reserve could well be possible if the economic data shows it to be.
Bank shares, which usually benefits from the increase in interest rates, went up post the remarks. A 0.5 percent rise was observed in Citigroup shares. Wells Fargo enjoyed an upswing of 0.4 percent. Walmart shares went down to $74.06, a dip of 0.6 percent. This happened after Berkshire Hathaway-the Warren Buffett venture- slashed its stake in this retailer.
Prior to this, US stocks went up on August 15, with all the three important indexes making record high closes for second time in the same week. This happened at the same time investors grappled with increasing oil prices. According to Bruce McCain of Key Private Bank, the basic picture was mixes and thus there is doubt that it is the reason for this good rally.
McCain also noted that the lead of Hillary Clinton, the Democratic nominee over Donald Trump, her Republican counterpart, could also contribute to recent rallies. He clarified that the highs does not indicate which candidate is better, but the markets generally prefer the party holding the administrative reigns to retain all control of White House. Ernie Cecilia of Bryn Mawr Trust said that the period was a vacation time between then and Labor day, and the market will go up in a little bit of news.
Stock values of Lockheed Martin, the defence firm, went down by 3.2 percent post its announcement of reduction of common shares numbers. These will be a component of the transaction where its information systems business would be spun off. Praxair, the industrial gas supplier, witnessed its shares increase by almost 2.8 percent post the announcement of the company that it is now engaged in preliminary merger discussions with Linde, the German company.
Labor department figures showed that consumer prices remained unchanged during July. The core prices, exclusing energy costs and food, went up by 0.1 percent.