US Stocks fall amid flagging consumer sentiments

The US stocks tumbled on Friday, 16 July 2021, with the Dow Jones Industrial Average, the S&P 500, and the Nasdaq all slid deeply into negative terrain, as a decline in cyclical stocks outweighing gains in growth stocks. The selloff flared amid concerns about higher inflation and after report from the University of Michigan showing an unexpected slump in consumer sentiments, shrugging off the Commerce Department report showing an unexpected increase in retail sales in the month of June.

At the close of trade, the Dow Jones Industrial Average index fell 299.17 points, or 0.86%, to 34,688. The S&P 500 index dropped 32.87 points, or 0.75%, at 4,327. The tech-heavy Nasdaq Composite Index was down 115.90 points, or 0.8%, to 14,427. For the week, the tech-heavy Nasdaq fell by 1.9%, the S&P 500 dropped by 1% and the Dow decreased by 0.5%.

Total 7 of 11 S&P 500 sectors declined, with energy (down 2.77%) sector was worst performer, amid a continued decrease by the price of crude oil. Meanwhile, Materials (down 1.53%), financials (down 1.34%), consumer discretionary (down 1.25%), and information technology (down 0.97%) issues were also notable losers. On the other hand, utilities (up 1%) sector was top gainer, followed by healthcare (up 0.22%) on defensive buying amid spike in coronavirus cases, led by the new Delta variant across the globe, reignited worries about a delay in the economic recovery.

Shares of Didi Global Inc fell as China sent state officials from at least seven departments to the ride-hailing giant for a cybersecurity review.

Shares of Moderna Inc jumped after S&P Dow Jones Indices said the drugmaker will join the S&P 500 index as of the start of trading on July 21, replacing Alexion Pharmaceuticals.

Intel Corp shares advanced after reports the chipmaker is in talks to buy semiconductor manufacturer GlobalFoundries Inc for about $30 billion.

ECONOMIC NEWS: The Commerce Department released a report showing retail sales climbed by 0.6% in June after plunging by a revised 1.7% in May. Excluding a steep drop in sales by motor vehicle and parts dealers, retail sales jumped by an even stronger 1.3% in June following a revised 0.9% decrease in May.

Separately, report from the University of Michigan showed the consumer sentiment index slid to 80.8 in July from 85.5 in June.

Among Indian ADR, Tata Motors fell 0.68% to $20.38, INFOSYS fell 1.28% to $20.86, Vedanta fell 0.55% to $14.36, Dr Reddys Labs shed 0.1% to $72.47, WNS Holdings fell 1.63% to $79.58, ICICI Bank shed 1.95% to $17.63, and HDFC Bank fell 0.53% to $74.59. Wipro added 0.87% to $8.15.

Powered by Capital Market - Live News