Stocks fell for a second day and losses intensified in the last tranche of business, amid a climate dominated by fears of higher inflation, fueled by rising commodity prices.
The Dow Jones industrial index fell 0.8%, the expanded S&P 500 indicator fell 0.9% while the Nasdaq technology contracted 0.6%, according to figures provided by the Bloomberg agency.
Tech stocks led the declines with Amazon, Microsoft and Alphabet erasing previous gains.
Nine of the top 11 industry groups in the S&P 500 fell, and energy stocks led the losses as oil prices fell amid a report that significant progress has been made to revive the nuclear deal between the United States and the United States. Iran.
Stocks are volatile after hitting highs in early May when investors assessed the prospects for economic growth in the face of a resurgence of Covid-19 in countries like India.
Analysts and investors are divided on the correction. For some, it is a technical correction and everything will pass quickly when economic activity normalizes, since the bet remains in the medium term.
For others, the excess liquidity dumped by the Treasury and the Fed in the economic aid packages to combat the pandemic, have put pressure on prices and generate an increase in inflation that will last until the central bank raises the reference rates and lower the purchase of securities.
Inflation topped the list of greatest risks, followed by an asset bubble.
The best Dow Jones stocks were WalMart + 2%, United Health + 0.4% and McDonald’s + 0.2%.
In the S&P 500, CVS Health + 4.8%, Viacom CBS + 4.6% and Boston Properties + 2.1% stood out.
Advances on the Nasdaq were posted at Pinduoduo + 3.6%, NetEase + 3.5% and Peloton Interactive + 3.1%.
In Europe, the stock markets closed with mixed results and with small variations due to optimism weighed by the greater easing of confinements and, on the other hand, sales orders from US investment funds influenced.
The leading Euro Stoxx 50 index closed balanced and the increases of the Dutch payment platform Adyen + 3.3%, the French energy company Engie + 3% and the German mail Deutsche Post + 1.7% stood out.
London’s FTSE ended flat, Frankfurt’s DAX 30 was down 0.1% and Paris’s CAC 40 was down 0.2%.
In Madrid, the IBEX 35 rose 0.3% while the Milan MIB advanced 0.1%. (Télam)
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