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The New York Stock Exchange is shown in the Manhattan borough of New York City, New York, United States, on April 16, 2021, amid the coronavirus illness (COVID-19) pandemic. Carlo Allegri/Reuters Reuters, NEW YORK, July 8 – On a broad sell-off fuelled by concerns about the pace of the US economic recovery, Wall Street fell dramatically on Thursday from the previous session’s record closing high. All three major U.S. stock indexes fell substantially early in the day as the bond market rose on a flight to safety, but they recovered by late afternoon. The S& “As far as crashes go, we’re back to yesterday at noon,” said Brad McMillan, chief investment officer for Commonwealth Financial Network in Waltham, Massachusetts. “I can live with a crash if that’s what it takes.” McMillan added, “This is a standard pull-back.” “People are saying’maybe things aren’t ideal,’ and they’re pulling money off the table, but I don’t believe the upside is over.” The most affected sectors were economically vulnerable smallcaps (.RUT) and transportations (.DJT). The Dow Jones Industrial Average (.DJI) dropped 326.2 points, or 0.94 percent, to 34,355.59; the S&P 500 (.SPX) dropped 36.5 points, or 0.84 percent, to 4,321.63; and the Nasdaq Composite (.IXIC) sank 78.29 points, or 0.53 percent, to 14,586.77. Traders closed short bets in the bond market as they detected cracks in the US economic recovery. For the ninth day in a row, the yield on the benchmark 10-year US Treasury note decreased. A new outbreak of the Delta COVID-19 type has caused Olympic officials in Tokyo to exclude spectators from the games, reigniting worries of a global health crisis. find out more According to McMillan, the Olympics are “a high-profile event on which individuals might hang their worries.” “Everyone has moved on from the pandemic in their minds, yet we may still be in danger.” Last week, the number of Americans filing first-time applications for unemployment benefits unexpectedly increased to 373,000, indicating that the labor market recovery in the United States is still bumpy. find out more The minutes from the Federal Reserve’s most recent monetary policy meeting were released on Wednesday, revealing that the central bank does not feel the economy has fully recovered, but that a debate on tightening policy has begun in earnest. find out more The continuous crackdown by Beijing on U.S.-listed Chinese enterprises exacerbated the risk-averse mindset. Since China’s first salvo against Didi Global Inc, a ride-hailing app, over the weekend, Beijing has expanded its scrutiny outside the internet sector. find out more Didi’s stock was down 4.3 percent at the time of writing, while Alibaba Group and Bidu Inc were both down 3.4 percent. The S&P 500’s 11 major sectors were all in the red, with financials (.SPSY) losing the most ground. According to Refinitiv, big banks are set to begin reporting for the second quarter next week, with analysts expecting aggregate year-over-year earnings growth of 65.4 percent, up from 54 percent at the start of the period. On the NYSE, declining issues exceeded advancing ones by a 3.28-to-1 ratio, while on the Nasdaq, decliners were favored by a 2.03-to-1 ratio. The S&P 500 made 21 new 52-week highs while the Nasdaq Composite made 33 new highs and 147 new lows. Stephen Culp contributed reporting; Ambar Warrick and Devik Jain in Bengaluru contributed further reporting; and David Gregorio edited the piece. The Thomson Reuters Trust Principles are our standards./nRead More

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