NEW YORK: Wall Street stocks endured another downcast trading day yesterday, ending a choppy session decisively lower as markets gird for a potentially grim US inflation report.
Analysts expect headline consumer prices rose 1.1% in June, even faster than the level in May. However, a slower increase is expected when food and energy is excluded.
Markets fear that another report showing hot inflation will lead the Federal Reserve to double down on large interest rate increases after the central bank announced in June it was boosting rates by three-quarters of a point, the biggest increase in nearly 30 years.
“This is certainly a week where markets have plenty to be worried about,” said Art Hogan, chief market strategist at B Riley Wealth Management, who noted investors are also worried about corporate earnings reports.
“Investors have taken a cautious stance the first two days of the week.”
The Dow Jones Industrial Average dropped 0.6% to end at 30,981.33.
The broad-based S&P 500 fell 0.9% to 3,818.80, while the tech-rich Nasdaq Composite Index tumbled 1.0% to 11,264.73.
Among individual companies, Boeing shot up 7.4% after it reported its highest monthly commercial plane deliveries since March 2019.
PepsiCo declined 0.6% after reporting a drop in second-quarter profit to US$1.4 billion, despite a 5.2% rise in revenues in results that topped estimates as it contended with rising cost pressures.
Peloton climbed 3.7% as it announced it would cease its own manufacturing and rely on Taiwanese manufacturer Rexon Industrial in an effort to simplify its supply chain. – AFP