Wall Street It closed lower on Tuesday, ending a multi-day streak of consecutive record highs as profit-taking and inflation concerns triggered a widespread sell-off.
All three major US stock indices lost ground, ending an eight-session streak of all-time closing highs for the year. S&P 500 and the Nasdaq.
After such a breakthrough, and in the absence of catalysts to drive the market, market players seemed ready to reap profits.
“We’ve had an incredible streak, so it’s perfectly normal that some air was released from the balloon,” said Ryan Detrick, chief market strategist at LPL Financial.
“It’s a reminder that stocks can’t go up every day,” Detrick added. “We are seeing some oversold weakness today, nothing overly concerning.”
The report of producer prices (PPI) of the work Department showed that inflation continues to accelerate as continuing challenges in the supply of goods and labor push price growth beyond the 2% annual average inflation target.
The report of the IPC Wednesday will be scrutinized for clues about the impact of producer prices on consumers, whose spending accounts for about 70% of the US economy.
The S&P 500 lost 16.45 points, or 0.35%, to 4,685.25 units, while the Nasdaq it fell 95.82 points, or 0.6%, to 15,886.54 units. The Promedio Industrial Dow Jones it fell 112.24 points, or 0.31%, to 36,319.98 units.
General Electric Co’s stock rose 2.6% following the announcement that the 129-year-old industrial conglomerate would split into three public companies to simplify its business.
Tesla Inc sank 12%, weighing down the consumer discretionary sector, after a Twitter poll of the CEO Elon Musk, which asked if it was selling a tenth of its shares, obtained 57.9% of votes in favor of the sale.
The public consultation raised questions about whether Musk violated an agreement with the United States Securities and Exchange Commission (SEC).
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Reference-www.eleconomista.com.mx