US: Stocks fall for the first time in three sessions on inflation woes

The US stock market finished lower for the first time in three sessions in row on Monday, 17 May 2021, as investors confidence unsettled amid lingering concerns about Federal Reserve tightening monetary policy after surveys pointing to rising inflation in the US.

At the close of trade, the Dow Jones Industrial Average index declined 54.34 points, or 0.16%, to 34,328. The S&P 500 index was down 10.56 points, or 0.25%, at 4,163. The tech-heavy Nasdaq Composite Index dropped 50.93 points, or 0.38%, to 13,379.

Total 8 out of 11 S&P 500 sectors closed lower, with communication services (down 0.88%), utilities (down 0.86%), and information technology (down 0.7%) sectors being notable losers, while energy (up 2.3%) and materials (up 0.9%) sectors were notable gainers.

Concerns that policy makers may have to pull back support sooner than expected to quell rising inflation have weighed on global equities. A survey by the University of Michigan last Friday showed consumers' expectations of price rises over the coming five years were at a decade high of 3.1%. Professional forecasters surveyed by the Philadelphia Federal Reserve also now expect average consumer price inflation of 2.3%, above the central bank's target, for the next 10 years.

Investors this week will parse the minutes from the Federal Open Market Committee's latest meeting for any discussion about accelerating price pressures, and hints of a timeline for reducing asset purchases.

In currency markets, the dollar index that measures the greenback against trading partners' currencies, dropped 0.2%.

Among Indian ADR, HDFC Bank added 2.24% to $71.65, ICICI Bank added 3.08% to $17.05, and INFOSYS added 0.06% to $18.17. Vedanta rose 1.53% to $15.30 and Tata Motors added 3.11% to $21.90. WNS Holdings fell 0.35% to $69.20 and Wipro dropped 1.08% to $7.31. Dr Reddys Labs was steady at $72.

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