New York: Stocks fell broadly on Wall Street Tuesday as new data showed that inflation is still running high, put the spotlight on what action will be taken by the Federal Reserve this year.
The S & P 500 fell 0.7%, adding to losses from the previous day.
Nearly 70% of companies in the benchmark index fell, led by technology stocks.
Only the financial sector stocks issuing profit.
Industrial average Dow Jones fell 0.3%, while the Tech-heavy NASDAQ Composite slid 1.1%.
Shares of smaller companies fell more than the broader market, closing 1% lower.
Sales came when investors receive other updates about inflation continue to rise.
The Labor Department reported that prices at the wholesale level jumped by a record 9.6% in November from a year earlier.
The producer price index measures inflation department before it reaches the consumer.
Businesses have to deal with supply chain problems and higher costs for months.
This has become a major concern for investors as large companies pass on costs to consumers, who so far to absorb higher prices for everything from groceries and other consumer products.
On Friday, the Labor Department reported that consumer prices rose 6.8% for the 12 months ended in November, the biggest increase in 39 years.
Discouraging reports about inflation ahead of the last two-day meeting of the Federal Reserve this year, which begins on Tuesday.
“What do the Fed with this data?” Said Tom Hautlin, national investment strategist at U.S.
Bank Wealth Management “That’s what investors are positioned today.” S & P 500 fell 34.88 points to 4.634.09.
The index set an all-time high on Friday, when closing the biggest weekly gain since February.
The index was up 23.4% so far this year.
The Dow fell 106.77 points to 35.544.18.
The Nasdaq fell 175.64 points to 15237.64.
Russell 2000 gave up 20.85 points to 2159.65.
The Federal Reserve is expected to accelerate the withdrawal of economic stimulus measures in the face of rising inflation.
In particular, he plans to speed up the process to cut bond purchases, which has helped keep interest rates low and support the stock market and the broader economy.
Beyond that, investors witnessed the central bank for any statement about how quickly it might raise interest rates in 2022.
Rising inflation and the Fed’s plan to reduce its economic support is the main reason for most chopet in the broader market, said Jay Hatfield, CEO advisor infrastructure capital.
“Reality less liquidity next year and it’s sinking caused massive sales momentum in most stocks are overvalued,” he said.
Technology shares led the market pullback Tuesday.
Microsoft fell 3.3% and Adobe slid 6.6% for the biggest decline in the S & P 500.
“Whenever there is the idea that the Fed may raise interest rates more than what is compared to the prices in the market sectors it became weak in the near future, “said Hautlin.
Mix of retailers and several large communications companies also fell.
Lowe cos.
Google fell 1.9% and down 1.3% holding alphabet.
Rising bond yields higher.
The yield on 10-year Treasury rose to 1.44% from 1.42%.
It helps the banks make the hike, because they rely on a higher yield to charge a more favorable interest on the loan.
JPMorgan Chase rose 0.8% and Bank of America rose 1.3%.
Energy sector shares fell 0.8% after a decline in crude oil prices A.S.
Hess fell 0.8%.
Wall Street is also watching the news about the latest Coronavirus variant spread rapidly in the UK and some other areas.
It seems to cause less severe illness than the previous version of the coronavirus, according to an analysis of data from South Africa.
Pfizer vaccine seems to offer fewer defenses against infection, but still offers a good protection of hospitalization.
Wall Street ends lower after the latest inflation report
