US Stocks Dip On Day, Week After Inflation Woe: July Still Up

NEW YORK (Pakistan Point News / Sputnik - 31st July, 2021) Stocks on Wall Street fell broadly on the day and week on concerns that US inflation was outpacing economic recovery from the novel coronavirus, although the modest gain for July eked out by equity markets suggested that cautious investing might be the way forward.

The Dow Jones, the broadest US equity barometer on the New York Stock Exchange, closed Friday's trade down 149 points, or 0.4 percent, at 34,935. It fell 0.4 percent for the week but rose 1.3 percent for July.

The tech-heavy Nasdaq Composite index finished the day down 106 points, or 0.7 percent, at 14,673. Nasdaq, heavily weighted by Amazon, also tumbled from disappointing second-quarter earnings posted by the e-commerce behemoth after Thursday's bell. The Big Tech index finished the week down 1.1 percent while rebounding 1 percent for July.

Amazon, which lost 7 percent on its own stock price, also pulled down the S&P 500, which groups the top 500 stocks on the New York Stock Exchange. The index settled Friday's trade down 21 points, or 0.5 percent, at 4,398 For the week, the S&P 500 declined 0.4 percent, while for July, it rose 1.8 percent.

"Risk appetite did not stand a chance given it is month end, peak earnings are passing by, and most of corporate America is still complaining about trouble finding workers and over persistent supply chain issues," Ed Moya, head of research for the Americas at New York brokerage firm OANDA, said. "So many investors look like they are ready to turn cautious as Wall Street becomes fixated over figuring out how soon will the economy make substantial progress in the labor market recovery."

US economic data this week had been less than comforting to investors. The first reading for second-quarter GDP growth came in at 6.5 percent, well below the 8.5 percent that economists polled by US media had forecast.

The Federal Reserve's preferred gauge for inflation - the core Personal Consumption Expenditure Index, which is stripped of volatile food and energy prices - increased by 3.5 percent year-on-year in June for its biggest expansion since 1991. US jobless claims stood at 400,000 and above for a second week in a row, suggesting a continued challenge for the fragile labor market recovery from the pandemic.