August 12, 2022

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Wall Street closes lower on inflation and corporate results data from Reuters

Wall Street closes lower on inflation and corporate results data from Reuters

© Reuters. Traders work during trading on Wall Street in New York on Monday. Photo: Brendan McDermidt/Reuters.

NEW YORK (Reuters) – U.S. stocks fell on Monday as a lack of stimulus prompted traders to wait for key economic data and the start of the second-quarter corporate earnings season.

Key growth companies driving the market pushed all three major U.S. stock indexes into negative territory as investors’ appetite for riskier assets waned.

JPMorgan Chase and Wells Fargo & Co. Major banks including results are expected to release their second-quarter corporate earnings season later this week.

Analysts expect a sharp decline in profits on an annual basis as companies increase provisions for loan losses, fueling fears of a possible recession.

Later this week, the Federal Reserve will approach its monetary policy meeting next week with a slate of economic data, including consumer prices, retail sales and factory production, that will show the extent to which inflation has peaked and the economy is stagnant. It is expected to decide on a 75 basis point hike in interest rates for the second time.

The market now expects the U.S. Federal Reserve to raise the federal funds rate by 75 basis points in its latest attempt to control inflation, a move that could push the already-slowing economy into recession.

According to preliminary data, the benchmark Standard & Poor’s 500 index ended the trading session on Wall Street down 44.59 points, or 1.14 percent, at 3,854.79 points, while the Nasdaq composite index fell 260.82 points, or 2.24 percent, to end at 474 points. .

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The industrial index fell 162.85 points, or 0.55 percent, to 31,165.57 points.

(Prepared by Waqti al-Alfi for Arabic Bulletin)