The US markets closed mostly lower on Monday, while the Dow Jones Industrial Average edged up to a record-high close even as the broader stock market came under pressure, with investors seeking more clarity on the policy proposals of President-elect Donald Trump’s administration. Major indexes surged since the election, with the Dow recording its biggest weekly gain since 2011. The S&P 500 saw its largest weekly advance since 2014 on a belief that Trump’s economic proposals will lead to accelerated economic growth. Bonds have been suffering on the view that while Trump’s policies could be good for growth, they could also be inflationary, meaning the Federal Reserve may be forced to raise interest rates faster than markets expected. Dallas Federal Reserve Bank President Robert Kaplan called for intelligent fiscal policy to boost growth over the long term saying the coming year under a new US president will be one of changes for economic policy. Kaplan added that investments should not just bring forward future spending to the present or simply balloon the national debt. The trade, which Trump has suggested he will restrict, has boosted US jobs.
Meanwhile, according to a Federal Reserve Bank of New York survey taken before Americans voted in this month’s presidential election, a measure of US inflation expectations held mostly steady at low levels in October, with only some momentum higher. The survey of consumer expectations, an increasingly influential gauge of prices for the US central bank, found that inflation is expected to be identical one and three years into the future. It found that year-ahead inflation expectations edged up to 2.6 percent last month. That is up from 2.5 percent in September, which was the survey’s lowest recorded level.
The Nasdaq was down 18.71 points or 0.36 percent to 5,218.40, S&P 500 dropped 0.25 points or 0.01 percent to 2,164.20, while Dow Jones Industrial Average gained 21.03 points or 0.11 percent to 18,868.69.
The Indian ADRs ended in red on Monday, Tata Motors was down by 2.40%, HDFC Bank was down by 1.25%, Infosys was down 0.45%, ICICI Bank was down by 0.20% and Dr Reddy’s was down 0.19%.
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