Wall Street closed lower on Tuesday after data released that showed producer prices rose more than expected in November, cementing expectations that the Federal Reserve will announce a more rapid reduction in its asset purchases this week.

The Omicron variant of the coronavirus has dampened investor sentiment after the S&P 500 Index hit an all-time high at the close of last week.

The declines were led by technology-related large caps, with Salesforce.com, Microsoft, Adobe and Alphabet trailing the S&P 500 and NASDAQ.

Apple was down 0.8% but ended far from its session lows after the iPhone maker said it would require customers and employees to wear face masks in its stores as Covid-19 cases rise.

The S&P 500 lost 0.75% to 4,634.09 units, while the NASDAQ Composite fell 1.14%, to 15,237.64. The Dow Jones Industrial Average fell 0.30% to 35,544.18 units.

Data from the Labor Department showed that the producer price index (PPI) for final demand in the 12 months to November soared 9.6%, its largest increase since November 2010.

About two-thirds of NASDAQ stocks traded below their 200-day moving average, according to Refinitiv data, suggesting that many stocks in the index are struggling, although the overall index remains just 6% below. its record close for November.

“Covid-19, plus inflation, is the Grinch who stole Christmas,” said Jake Dollarhide, CEO at Longbow Asset Management.

For its part, the Mexican Stock Exchange (BMV) closed higher. The S & P / BMV IPC advanced 1.63% to 51,241.47 units. The FTSE BIVA, the main index of the Institutional Stock Exchange (Biva) rose 1.71% to 1,057.59 units.

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Within the main stock index of the BMV, most of the components closed with gains, with 29 stocks in green and six in red. The best performances were from Genomma Lab (6.47%); BanRegio (6.33%) and FEMSA (4.41%).

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