NEW YORK – Wall Street waffled but showed some signs of stability Monday, posting a moderate decline after falling sharply early in the session in response to sinking commodities prices. The Nasdaq composite index was hit hard as technology stocks fell out of favor with risk-averse investors, but it also finished above its lows for the day. After dropping along with markets in other countries, U.S. stocks managed a modest comeback including a brief foray into positive territory by the Dow Jones industrials shortly before the close. But with the outlook for inflation and interest rates still unclear, traders were nervous about buying stocks affected by the sliding price of gold and other metals, as well as riskier investments such as tech issues. And so it wasn’t certain whether stocks could continue to steady themselves when trading resumes today. The retreat in commodities overshadowed a rebound in bonds and a recovering U.S. dollar. “This is essentially a classic tug of war between real assets and financial assets,” said Jack Ablin, chief investment officer of Harris Private Bank. Stocks built on losses that began May 10 amid fears that inflation will bring higher interest rates; the decline has sent the Dow tumbling more than 4 percent since then. AD Quality Auto 360p 720p 1080p Top articles1/5READ MOREBasketball roundup: Sierra Canyon, Birmingham set to face off in tournament quarterfinalsWhile the market has been hoping for lower oil and gold prices to help ease inflation, analysts say overly optimistic investors had bid stocks higher earlier this spring and now aren’t ready to start buying again. “What needs to happen is investors need to start discerning what’s risky and what’s not,” Ablin said. “Right now, they’re just busy selling without any regard for quality.” The Dow fell 18.73, or 0.17 percent, to 11,125.33, after tumbling as much as 103 points earlier. The Dow briefly turned higher late in the day as investors bought up large-cap stocks, which have lagged the broader market so far this year. Broader stock indicators also recouped some earlier losses. The Standard & Poor’s 500 index lost 4.96, or 0.39 percent, to 1,262.07, while the Nasdaq dropped 21.02, or 0.96 percent, to 2,172.86, a sign of Wall Street’s diminishing faith in the volatile tech sector. Crude futures bounced back after hitting a six-week low at midday, although traders were still worried that persistent high prices were eroding demand. A barrel of light crude gained 70 cents to settle at $69.23 on the New York Mercantile Exchange. Elsewhere, the U.S. dollar was little changed against the Japanese yen and European currencies. Gold prices lingered near $655 per ounce after losing about $70 in last week’s plunge. Monday’s sell-off reflected Wall Street’s continued anxiety over the prospect of more interest rate hikes from the Federal Reserve. Investors, hopeful that the Fed was near the end of its rate tightening, catapulted stocks to multiyear highs earlier this month, but recent indications that inflation remains an issue and that higher rates could be coming sent the market racing downward. “When the Fed raises rates at this stage, they do it because they want to slow down the economy,” said Ed Peters, chief investment officer at PanAgora Asset Management. “There aren’t any real signs that the economy is actually slowing down.” But while stock traders have reworked their expectations for interest rates, the bond market has been more optimistic in recent weeks, lifting Treasury notes from a four-year low. “I think bond investors are siding with the Fed – there’s this unwavering faith that the Fed will be able to raise short-term rates and contain any inflation,” Ablin said. The yield on the 10-year Treasury note dipped below 5 percent for the first time in a month before the bond market’s rally fizzled in afternoon trading. The 10-year yield slipped to 5.04 percent from 5.05 percent late Friday.160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set!
Senior Congress leader Digvijaya Singh on Tuesday accused Chhattisgarh Chief Minister Raman Singh and other BJP leaders, who win elections from Naxalism-affected areas, of striking a “deal” with the guerrillas.“I have said this before and am repeating, that Raman Singh and all those BJP leaders who have won from Naxalism-hit areas have struck a deal with Naxals and there is some exchange between them,” he said.Mr. Singh said Naxalism could not be wiped out till the State government took tribals and those living in these areas into confidence and spoke to them. “You cannot end Naxalism till the time you talk to all,” he said.The “inability” of the State government in fighting Naxalism lay in the “lack of will” of the Chief Minister, Congress spokesperson Randeep Surjewala said. He took a swipe at BJP president Amit Shah over his party’s expansion plan.
Kashmir remained on the edge on Saturday as bodies of three Lashkar-e-Taiba (LeT) militants, including commander Junaid Matto, were recovered from the Arwani encounter site in south Kashmir. Scores of armed militants participated in their funerals.The bodies of the militants were spotted in the debris in the morning. “Junaid’s killing is a great achievement for us and a blow to LeT,” said Director General of Police (DGP) S.P. Vaid.According to the police, Junaid was a district commander and involved in a number of terror activities, including three attacks on policemen.The bodies of two others, Nasir Wani and Adil Mushtaq Mir, both locals in their twenties, were found in the debris of two civilian residential houses, where they were holed up. They had joined the militancy last year, said the police.“Arms and ammunition, including AK rifles, magazines and grenades, have been recovered from the Arwani site,” said the police.Hundreds of locals attended the funerals of the slain LeT militants as they were buried in their respective hometowns in Pampore, Shopian and Kulgam.Scores of armed militants were spotted at these funerals. Eyewitnesses said these militants offered gun salutes to the slain militants and were seen hugging their bodies as people jostled to catch glimpse of them on their mobile phones. Anti-India slogans raisedPeople raised anti-India and pro-freedom slogans during the funerals.Top LeT commander Saddam Padder and his associates were also seen at the funeral of the slain Nasir Wani at Shopian’s Heff area. He was seen loading his AK-47 and open fire in the air as mourners ducked to stay safe. He raised anti-India and pro-Islam slogans before vanishing into the crowd.“India must pay for its crimes on humanity,” said LeT chief Mahmood Shah.Meanwhile, there were emotional scenes as two civilians hit by bullets were buried in their respective villages. The civilians were killed when the security force opened fire to disperse the locals who were converging on the encounter site.The separatists’ shutdown and the authorities’ restrictions impacted daily life in the Kashmir Valley on Saturday. Large deployments were made in all sensitive locations in Srinagar and parts of south Kashmir. Traffic remained off the roads and train services in south Kashmir were suspended.