Tuesday, July 23, 2024

Wall Street continues its losses amid renewed concerns about inflation


US stock markets fell for a second day in a row on Wednesday; Persistent concerns about inflation have raised doubts about the likelihood of the Federal Reserve holding off on raising interest rates at its meeting on September 19.

The Dow Jones industrial average closed down 198.78 points, or 0.57%, at 34,443.19. The S&P 500 ended down 0.7% at 4,465.48, while the Nasdaq Composite fell 1.06% at 13,872.47.

Treasury yields rose, again weighing on risk assets. The yield on two-year Treasuries was up more than 5 basis points and traded above the 5% level.

Under price pressure, tech stocks underperformed, with the tech-heavy Nasdaq posting a third straight day of losses. The biggest laggards included Nvidia and Apple, each down more than 3%. Along with Apple, Amgen and Boeing fell more than 2%, weighing on the Dow Jones.

Mohamed El-Erian, from Allianz, said: “Rising oil prices have a significant impact on intervention inflation, and combined with a stronger-than-expected economy, this will strongly influence the Federal Reserve’s upcoming interest rate decisions.”

Roku shares rose more than 13% after announcing a slew of cost-cutting measures, including layoffs.

Southwest shares fell 0.03%, as unit revenue expectations fell as fuel costs rose.

On the economic front, investors took in fresh U.S. trade deficit data that showed the trade deficit widened less than expected in July. (agencies)

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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