New York: Wall Street closed lower on Thursday as investors dismantled several advantages after three consecutive days and changed their focus towards future inflation data and how it affected the Federal Reserve meeting next week.
The Nasdaq fell sharper than the S & P 500 while Dow was almost flat, ended less than 1 point.
Investors are in the game waiting in front of US consumer price inflation prices (CPI) maturing Friday morning.
Reading higher than estimates will strengthen the case for policy tightening decisions at the US Central Bank meeting.
In the first three days of the week, the Nasdaq rose 4.7%, s & p forward 3.6% and Dow rose 3.4% because fear of subsidizing the latest Omicron Coronavirus variants.
“We have a rally rally ripping.
There are still nervous people out there,” said Dennis Dick, head of the market structure, ownership trader at Bright Trading LLC in Las Vegas.
“We will rally anomicron help but the underlying problem still exists, that the Fed takes punchbowl away.” Joe Quinlan, head of the main strategy for the CIO Bank of America office, said investors might take advantage and pause purchases after three advantages.
“There may also be a little risk trade ahead of the CPI number on Friday,” he said.
“If it comes hotter than expected, it really illuminates light and focuses on the Fed meeting.
The pressure will be built on the Fed for a faster tapering.” The Fed Powell seat marked last week that the meeting would include a discussion about tapering faster than bond purchases.
“It will reaffirm in mind many people that the Fed is behind the curve,” said Quinlan.
If the inflation rate implies the need to raise interest rates faster, this “will put pressure on technology and offer a cycle” he said.
“You want to buy a company that can continue a higher cost to consumers.
It damages the story of growth.
You want to have more cycles and values ​​than growth,” Quinlan said.
Reuters poll predicted by the Fed will raise interest rates by 25 basis points to 0.25-0.50% in the third quarter of next year.
However, most of them see the risk that the increase comes faster.
The average Dow Jones industry fell 0.06 points to 35,754.69, S & P 500 lost 33.76 points, or 0.72%, to 4,667.45 and the Nasdaq composite fell 269.62 points, or 1.71% , to 15,517.37.
Nine of the main S & P sectors declined, with consumer discretion fell 1.7%, loss of most and real estate, down 1.4%, and information technology fell 1%, indicating the next biggest loss.
The only advantage of the sector is health services up 0.2% and the main consumers attached to a 0.06% increase.
Healthcare was driven by the distribution of CVS Health Corp.
by 4.5% after the drug store operator raised the estimated profit of 2021.
In consumer staples, Tesla heavyweight electric car makers were the biggest percentage of decline, falling 6%.
The market has been seaesawed since late November when the Omicron variant was found.
Investors worry it can increase global recovery when soaring inflation with Fed comments worsens volatility.
Wall Street’s main index supported this week with updates featuring Pfizer and Biontech vaccines offering some protection against Omicron variants.
Data showed the initial claims for the state unemployment benefits fell 43,000 last week to 184,000, the lowest level in more than 52 years.
GameStop Corp.
fell 10% after a popular video game retailer among retail investors said it issued a court call by US Securities Regulators in August for documents about its stock trading activities.
The problem decreases exceeds the advancing amount on the NYSE with a 3.03-to-1 ratio; On the Nasdaq, the 3.05-to-1 ratio is preferred by the decliner.
The S & P 500 posted 23 highs of 52 weeks and 1 new low; The Nasdaq composite records the 34 newest new and newest lowest.
In the US exchanged 9.75 billion shares changed hands compared to an average of 11.41 billion for the last 20 sessions.