US Stocks fall on fear of faster Fed tightening

The US stocks closed volatile trading mostly lower on Monday, 10 January 2022, with the Dow and the S&P 500 settling slightly below neutral line, while the Nasdaq managed to end in the positive territory.

The weakness on Wall Street was due to lingering concerns about the economic impact of the Omicron variant of the coronavirus and the likelihood the Federal Reserve will raise interest rates in the near future to tackle inflation. Some of Wall Street's biggest banks expect the Federal Reserve to raise interest rates four times this year, and sees the Fed beginning the process of reducing its balance sheet size as soon as July.

At the close of trade, the Dow Jones Industrial Average index fell 162.79 points, or 0.45%, to 36,068.87. The S&P500 index dropped 6.74 points, or 0.14%, to 4,670.29. The tech-heavy Nasdaq Composite Index added 6.93 points, or 0.05%, to 14,942.83.

Total shares volume turnover on U.S. exchanges stood at 10.14 billion shares. Declining stocks outnumbered declining ones on the NYSE exchange by 2133 to 1219 and 179 closed unchanged. In the NASDAQ, 1598 issues advanced, 3131 issues declined, and 266 issues unchanged.

Total 8 of 11 major S&P 500 sector indexes declined, with bottom performing issues were industrials (down 1.15%), materials (down 1%), consumer staples (down 0.73%), and consumer discretionary (down 0.6%), while top performing issues included healthcare (up 1.04%).

Among Indian ADR, WNS Holdings added 0.23% to $88.02, Tata Motors added 2.28% to $33.63, HDFC Bank added 1.05% to $71.33, and ICICI Bank added 0.65% to $21.84. INFOSYS added 2.36% to $24.77 and Dr Reddys Labs added 0.08% to $63.67. Azure Power Global declined 7.15% to $15.33 and Wipro sank 2.5% to $9.37.

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