US Stocks fall on economic growth concerns

The US stocks declined further on Wednesday, 08 September 2021, with the Dow Jones Industrial Average and the S&P 500 adding losses from the previous session, while NASDAQ Composite declined from Tuesday's record high.

The weakness on the Wall Street was due to concerns about the Federal Reserve scaling back its asset purchases and the pace of economic recovery amid rapid spread of the delta variant of the coronavirus.

The U.S. economy "downshifted slightly" in August as concerns grew over how the renewed surge of coronavirus cases would affect the economic rebound, the Federal Reserve said on Wednesday in its latest Beige Book.

At the close of trade, the Dow Jones Industrial Average index declined 68.93 points, or 0.2%, to 35,031.07. The S&P 500 index fell 5.96 points, or 0.13%, to 4,514.07. The tech-heavy Nasdaq Composite Index was down 87.69 points, or 0.57%, to 15,286.64.

Total 6 of 11 S&P500 sectors declined, while remaining 5 sectors closed up. Energy (down 1.3%) sector was worst performer, followed by materials (down 1%), communication services (down 0.43%), and financials (down 0.34%) sectors, while utilities (up 1.8%) sector was top gainer, followed by consumer staple (up 0.77%) and real estate (up 0.55%) sectors.

Total volume turnover on U.S. exchanges was 8.13 billion shares, down from previous session volume of 8.14 billion shares. In the NYSE exchange, 1279 issues advanced, 2038 issues declined, and 114 issues closed unchanged. In the NASDAQ, 1389 issues advanced, 3013 issues declined, and 192 issues unchanged.

The top five performing stocks in the S&P index were Perrigo Co Plc (up 9%), Global Payments Inc (up 7.2%), General Mills Inc (up 4.6%), Everest Re Group (up 4.5%), and Kraft Heinc Co (up 3.9%), while bottom five performing stocks included Pultegroup Inc (down 6.1%), Freeport-McMoRan Inc (down 5.5%), Universal Health Services Inc (down 4.3%), Seagate Technology holdings (down 3.5%), and Western Digital Corp (down 3%).

ECONOMIC NEWS: Economic growth slowed to a moderate pace in early July through August, according to the latest edition of the Federal Reserve's Beige Book that was released on Wednesday. The central bank noted that safety concerns tied to the delta variant of COVID-19 prompted a pullback in dining out and travel, which weigh on the greater economy.

Among Indian ADR, Dr Reddys Labs fell 0.3% to $66.32, INFOSYS fell 1% to $23.19, WNS Holdings fell 0.68% to $82.12, Wipro fell 2.4% to $9.41, and HDFC Bank fell 0.5% to $76.72. Vedanta added 0.82% to $17.19, ICICI Bank rose 0.05% to $19.61, and Tata Motors added 0.3% to $19.82.

Powered by Capital Market - Live News