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- Stocks on Wall Street slide amid increasing uncertainties for the economic outlook
- Dow drops 290 points a day after it lost more than 260 points
Wall Street Stocks Tumble to New Weekly Lows
Stocks fell on Tuesday, extending their selloff into a second day this week. Following a week of declines, investors have been largely unwilling to increase their risk appetite amid signs of an emerging slowdown in the economy.
The S&P500 declined 25.68 points, or 0.57%, to finish the day at 4,443.05. The Dow Jones Industrial Average tumbled 292.06 points, or 0.84%, to settle at 34,577.57. The blue-chip benchmark has lost about 550 points over the past couple of days.
The tech-heavy Nasdaq Composite could not shake off the selling pressure and ended the day lower by 67.82 points, or 0.45%, to 15,037.76.
All three major indexes opened for trading yesterday on a highly positive note. During the second half of the session, however, investors retreated, causing the stock market to pull back from its intraday highs and enter into negative territory.
Delta Strain Jitters and Inflation Concerns Dampen Sentiment
Delta strain infections have been a primary reason for concerns that the economic recovery might have peaked during this cycle. The US has been reporting a steady rise in daily cases over the past couple of months and has now reached a seven-day average of more than 150,000 cases per day.
The defensive approach to the market has resulted in a consistent slide in the S&P500 which has declined in six of the past seven trading days.
Meanwhile, the Labor Department said Tuesday’s consumer-price index rose 0.3% in August from a month earlier. The print was lower than the 0.4% economists had predicted. Year on year, consumer price inflation rose 5.3%, meeting analyst expectations.
Despite the slight cooldown in inflation, prices remained on a relatively high level as the surge in Covid-19 infections has dented the labor market, and pandemic-related shortages and bottlenecks have continued to drive up prices.
Apple Event Brings No Surprises
In individual stocks, shares of Apple declined about 1% after CEO Tim Cook revealed the new iPhone 13 and a smartwatch with a new look from the Series 7. After the 90-minute event concluded, shares of Apple traded down 1.5% as shareholders did not hear expected insights into the tech giant’s plans about rolling out smart glasses and electric cars.
European Shares Search for Direction
Across the Atlantic, European markets traded mixed on Tuesday and opened Wednesday’s session fairly muted and seeking direction. The region-wide Stoxx 600 finished Tuesday’s session virtually flat, while major European bourses experienced jitters amid declining optimism.
The French CAC40 fell 0.4%, while in London, the FTSE100 retreated 0.5%. The German DAX advanced 0.14% as the only major benchmark in the green.
Cryptocurrencies Attempt a Rebound
Over to cryptocurrencies, bitcoin is trading moderately higher in the early hours of Wednesday’s session. The original coin reached a weekly high today as the price spiked to $47,400 per token. Ether remained stable above $3,300.
As the cryptocurrency market draws more attention as days go by, regulators are eager to step in and introduce some basic levels of protection. On that note, Securities and Exchange Commission Chairman Gary Gensler appeared before the Senate Banking Committee on Tuesday to address the agency’s plans to regulate bitcoin and digital assets.
Mr. Gensler told lawmakers cryptocurrency exchanges needed regulatory frameworks as more and more retail investors are accessing the market.
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