The US markets closed lower on Monday, but off session lows, as investors wrestled with uncertainty over the policies of President Donald Trump and as a batch of corporate quarterly results came out mixed. Stocks initially pared losses as the first official Trump administration news briefing, hosted by Press Secretary Sean Spicer, got under way Monday, following a weekend of protests across the country and world in the wake of Trump’s inauguration. That modest paring of losses stalled but picked up again heading into the close. Some fear the postelection rally for stocks may continue to unwind if Trump doesn’t start to get more specific about his fiscal plans. Fulfilling a campaign promise, Trump signed an order officially pulling the US out of the Trans-Pacific Partnership. Congress had never ratified the agreement. On deck, Trump has set up meetings with Canadian and Mexican leaders, and will host UK Prime Minister Theresa May on Friday to lay the groundwork for a trade pact.
Meanwhile, Jeffrey Lacker, the hawkish president of the Federal Reserve Bank of Richmond, said that he is worried inflation could surge unless the US central bank raises interest rates faster than his fellow policymakers anticipate. Most of the Fed’s policymakers see the central bank raising rates three times this year. Lacker has for the last several years argued that the Fed should raise rates to prevent a spike in inflation even though it has lingered well below the central bank’s 2 percent target for most of that period. The Fed’s policy-setting committee will meet next week. It is not expected to raise rates after lifting them by a quarter of a percentage point in December.
The Dow Jones Industrial Average lost 27.40 points or 0.14 percent to 19,799.85, the Nasdaq dropped 2.39 points or 0.04 percent to 5,552.94, while S&P 500 was down by 6.11 points or 0.27 percent to 2,265.20.
The Indian ADRs closed mostly in red; Dr. Reddy’s Lab was down 0.34%, Infosys was down 0.27% and ICICI Bank was down 0.09%. On the other hand, Tata Motors was up 0.63% and HDFC Bank was up 0.13%.
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