Wall Street closed with losses after a series of reports that showed that inflation in the United States has not yet reached its peak

Workers at the New York Stock Exchange (Reuters/Brendan McDermid)

Stocks closed lower on Wall Street, led by declines in large companies technology And erased the gains of the S&P 500 for the week.

The Standard & Poor’s 500 It fell 0.7% on Wednesday, while Dow Jones down 0.5% and the Nasdaq 1.2 percent. Values small businesses It fell more than the rest of the market.

Wall Street was sucking up a mix of updates on retail that showed Inflation pressure continues to affect businesses and consumersBut it also shows that spending remains strong.

companies technology and the retailersExpensive, suffered some of the biggest losses. comp Public services and the Energy values They have held up better than the market in general.

targeting It fell 2.3% after reporting a nearly 90% drop in second-quarter earnings as it was forced to cut prices to remove unwanted inventories. The retailer warned earlier this summer that it was canceling supplier orders and slashing prices due to a A sharp shift in spending by Americans as the pandemic recedes.

Children’s clothing and accessories chain Children’s Place fell 12.4% after some reports Sudden losses in the second quarterfacing supply chain problems and pressure from inflation.

Bond yields rose sharply. The 10-year Treasury yield rose to 2.89% from 2.81% on Tuesday.

Retail sales in the United States no different Last month, according to the Commerce Department, economists had expected a slight increase in July. Part of the weakness was attributed to a 1.8% drop in gasoline sales, reflecting lower prices at gas stations.

Wall Street is closely watching the latest economic data and business updates to get a better idea of ​​how inflation is affecting businesses, consumers and Whether the highest inflation rate of the past 40 years has peaked or is beginning to subside. Investors also monitor inflation to determine how much more investors have to go. central banks In their fight against rising prices.

Britain’s inflation rate rose in July to its highest level in 40 years 10.1%, At a faster pace than in the US and Europe, rising food prices in the UK have increased pressure on the cost of living, due to rising energy costs. Inflationary pressures prompted the Bank of England to raise its key interest rate by half a percentage point this month, the largest increase in six consecutive hikes since December.

The Federal Reserve has been raising interest rates to slow the economy and tame inflation, but investors remain concerned that it could hit the brakes too hard and push the economy into recession. In July, the Fed raised the benchmark interest rate by Three quarters of a point For the second time in a row. Wall Street will learn more about this decision process when the Federal Reserve releases minutes later on Wednesday.

(with information from AP)

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