Wall Street ends down as jittery investors await Fed report


Article content

Wall Street’s main indices ended lower on Tuesday, as data showing stronger inflation and weaker U.S. retail sales in May unnerved investors who were already jittery as they await the results of the Federal Reserve’s latest policy meeting.

Assurance from the Fed that rising prices are transitory and falling U.S. Treasury yields have helped ease some concerns over inflation and supported U.S. stocks in recent weeks. All eyes are now on the central bank’s statement at the end of its two-day policy meeting on Wednesday.

Data showed an acceleration in producer prices last month as supply chains struggled to meet demand unleashed by the reopening of the economy. A separate report showed U.S. retail sales dropped more than expected in May.

“There was a bit of a reaction to the economic data we got, which, for the most part, shows that the economy is starting to wean itself off stimulus, the recovery is slowing down a little, and inflation is continuing to grow,” said Ed Moya, senior market analyst for the Americas at OANDA.

“We’re seeing some very modest weakness, and it’ll be choppy leading up to the Fed decision. Right now, the Fed is probably in a position to show they are thinking about tapering, but they’re still a long way from actually doing it.”

Article content

The Fed is likely to announce in August or September a strategy for reducing its massive bond buying program, but will not start cutting monthly purchases until early next year, a Reuters poll of economists found.

The benchmark S&P 500, the blue-chip Dow Jones and the tech-focused Nasdaq have all gained so far this year, largely driven by optimism about an economic reopening.

However, the S&P 500 has been broadly stuck within a range, despite recording its 29th record-high finish of 2021 on Monday, versus 33 for all of last year.

Unofficially, the Dow Jones Industrial Average fell 91.92 points, or 0.27%, to 34,301.83, the S&P 500 lost 8.29 points, or 0.19%, to 4,246.86 and the Nasdaq Composite dropped 101.29 points, or 0.71%, to 14,072.86.

The majority of the 11 major S&P sectors slipped. The energy index rose as oil prices hit multi-year highs on positive demand outlook.

The communication services sector ended lower, having hit a record intraday high earlier in the session.

In corporate news, Boeing Co gained after the United States and the European Union agreed on a truce in their 17-year conflict over aircraft subsidies involving the planemaker and its rival Airbus.

Having slumped 19% on Monday, Lordstown Motors Corp shares rallied after comments from the electric truck manufacturer’s president on orders. (Reporting by David French in New York; additional reporting by Shashank Nayar and Medha Singh in Bengaluru; Editing by Maju Samuel and Dan Grebler)



Source link

Latest

Digital fuels every aspect of how we live, learn, work, and play: Nitin Singhal, MD – Digital Experience, Adobe India

NITIN SINGHAL, MD, Digital Experience, Adobe IndiaThe pandemic has triggered a digital-first world, driving businesses to accelerate their digital transformation plans towards delivering...

Do Product Managers Need to Understand SQL and Python?

PMs from around the world took a stab at this dividing question of whether Product people need to understand Python/ SQL in today's...

The best sites from where you can buy cryptocurrency

Often it is very interesting to "trust" and "bet" in the medium-long term, for projects that can have a lot of growth in the...

Audio streaming gains popularity as homebound listeners seek variety

With an estimated 57.6 million monthly listeners, India is the third-largest podcast listening market after China and the US, according to analysts at...