Wall Street losses end run of record highs
Wall Street has closed lower, ending a multi-day rally of consecutive record closing highs as profit-taking and worries over ongoing inflation fuelled a broad sell-off.
All three major US stock indexes lost ground, marking the conclusion of an eight-session streak of all-time closing highs set by the S&P 500 and the Nasdaq.
After such a run, and in the absence of market-moving catalysts, market participants appeared primed to take profits.
"We've had an incredible run, so letting some air out of the balloon is perfectly normal," said Ryan Detrick, chief market strategist at LPL Financial in Charlotte, North Carolina.
"It's a reminder that stocks can't go up every day," Detrick added. "We're seeing some oversold weakness today, nothing overly concerning."
The Labour Department's producer prices report showed inflation continues to gather heat as ongoing goods and labour supply challenges send price growth further beyond the US Federal Reserve's average annual two per cent inflation target.
Wednesday's CPI report will be scrutinised for clues regarding the extent to which producer prices are being passed along to the consumer, whose spending represents about 70 per cent of the US economy.
The Dow Jones Industrial Average fell 112.24 points, or 0.31 per cent, to 36,319.98, the S&P 500 lost 16.45 points, or 0.35 per cent, to 4,685.25 and the Nasdaq Composite dropped 95.81 points, or 0.6 per cent, to 15,886.54.
Five of the 11 major sectors of the S&P 500 ended the session red, with consumer discretionary shedding 1.4 per cent, the largest percentage drop. Utilities led the gainers, advancing 0.4 per cent.
The finish line for third-quarter earnings season is in sight, with 445 of the companies in the S&P 500 having reported. Of those, 81 per cent have beat consensus, according to Refinitiv.
General Electric surged 2.6 per cent following the 129-year-old industrial conglomerate's announcement it would split into three separate public companies to simplify its business.
Tesla plunged 12 per cent, weighing on the consumer discretionary sector and extending its losses after CEO Elon Musk's Twitter poll proposing to sell a tenth of his holdings garnered a 57.9 per cent vote in favour of the sale.
This raised questions as to whether Musk violated a settlement with the US Securities and Exchange Commission.
Online retail stock-trading app Robinhood reported a security breach affecting about five million customers, sending its shares sliding 3.4 per cent.
On the plus side, upbeat quarterly results sent video game maker Zynga jumping 9.4 per cent while homebuilder D.R. Horton was up 5.2 per cent.
Declining issues outnumbered advancing ones on the NYSE by a 1.13-to-1 ratio; on Nasdaq, a 1.40-to-1 ratio favoured decliners.
The S&P 500 posted 34 new 52-week highs and two new lows; the Nasdaq Composite recorded 120 new highs and 73 new lows.
Volume on US exchanges was 11.02 billion shares, compared with the 10.76 billion average over the last 20 trading days.
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