Stocks have been trending lower since the S&P 500 experienced its most significant dip in four weeks, snapping a five-day gain streak, says ABC News.
The S&P 500 index fell 0.2% and Nasdaq composite lost 0.9% to 14,525.91.The Dow Jones Industrial Average fell 1.1% to 34,960.69. The Nasdaq composite was essentially flat. The Investors will be looking for any indications from the Fed on how the US economy is recovering from the pandemic and any concerns they may have about inflation.
The biggest worry among stock market investors is that the Fed will end its easy money policies earlier than expected. Some Fed officials, citing strong hiring growth and rising inflation, have said that the central bank should start normalizing monetary policy soon. But others argue the Fed needs to see stronger economic data to establish a recovery.
“We’re having a pretty cautious week for the most part,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “A lot of the people who were optimistic that reopening would happen quickly are obviously disappointed, but we’re looking at what’s happening with the delta variant as more of a setback, not a change in direction,” he said.
The surprisingly quick spread of the delta has led health authorities to offer COVID-19 boosting doses to all vaccinated Americans while assessing the safety and effectiveness of a third dose is waiting for the whole plan. Following the revelation, the vaccine makers of COVID-19 have been mixed. Pfizer grew by 1%, while Moderna decreased by 2.3%.
Benchmark U.S. crude fell $1.16 to $64.30 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price standard for international oils, shed $1.05 to $67.18 per barrel in London.
A surprise rise in US gasoline inventories has more than offset a drop in its crude stockpile, Venkateswaran Lavanya of Mizuho Bank said.
“This underpins concerns that delta risks may be getting in the way of travel,” she added.
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Source: ABC News