Stocks Decline As World Bank Cuts Growth Forecast
US stock futures were losing value as stock indexes remained near record-high levels during the midweek trading session in the aftermath of a global lender reducing the world's outlook for growth.
Wednesday, June 11, 2014 - 00:00
No clear denouement has emerged for stock futures on Wall Street despite the repeat record highs that some indexes have marked recently. The Dow touched its all-time high value during the Tuesday trading session. The S&P endured some losses on Tuesday after having touched record highs during the past four days, promoting additional wonder about the path ahead. Just after 10 a.m. in New York, the Nasdaq dipped 0.20%, a fall of 8.88 points to 4,329.12; the S&P 500 edged down 0.33%, a fall of 6.61 points to 1,944.25; and the Dow dipped 0.45%, a drop of 75.9 points to 16,870.02.
Global lender cuts outlook
US stocks were not alone in their volatility and struggle on Wednesday. The Associated Press reports global stocks were pinched by The World Bank reducing its outlook for its growth forecasts. The lender issued a report on Tuesday that slashed this year's forecast to 2.8% after having earlier this year issued a growth rate of 3.2%. The Washington-based institute pointed to the harsh winter in the US and the ongoing strife between Russia and Ukraine as two factors that prompted it to re-assess the global temperature.
But strong labor market data released earlier during the Tuesday trade session by the US government brightened the outlook in the US, particularly during the final month of the first half of this year.
Results of a political race in the US are likely to dampen the mood during the Wednesday trading session, according to Bloomberg. Virginia Republican Eric Cantor, the majority leader of the US House of Representatives, conceded defeat Tuesday evening to a Tea Party-supported opponent following the primary vote. Speculation is mounting that Capitol Hill is prone to additional squabbling. The market also could feel the tremors of Cantor's defeat.
The representative closely allied with Wall Street regarding issues that are pertinent to the performance of the market. A seven-term Virginia congressman, Cantor had a hand in the creation and implementation of the 2008 Troubled Asset Relief Program and he is a staunch supporter of the Export-Import Bank.
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