Wall Street ends slightly lower as investors eye inflation indices

U.S. stocks closed slightly lower on Tuesday, and each of Wall Street’s major indexes failed to move away from the unchanged mark following a rally in the previous session as investors continue to move away from the unchanged mark. ‘try to assess the route of inflation.

Yields on longer-term U.S. Treasuries fell for a fourth day in a row, with the benchmark 10-year yield hitting a new two-week low of 1.557% and helping to ease inflation concerns. The yield had climbed to 1.776% by the end of March.

Federal Reserve officials continue to downplay mounting price pressures, and Fed Vice Chairman Richard Clarida has said the central bank can take action to curb rising inflation, if it fails. was producing, without derailing the economic rebound resulting from the coronavirus pandemic. Read more

While most market participants expect prices to rise as the economy recovers, concerns about the speed and trajectory of the rise persist.

“Maybe the bond market isn’t that out of balance,” said Jim Paulsen, chief investment strategist at The Leuthold Group in Minneapolis, who says the bond market doesn’t seem too concerned about inflation for the moment.

“It’s a combination that maybe the Fed is right, but also that the Fed has for the first time shown that it is starting to talk about tapering (bond purchases), which is also a heartwarming sign that ‘There is still an anti-inflation heartbeat in the Federal Reserve. “

The Dow Jones Industrial Average (.DJI) fell 81.52 points, or 0.24%, to 34,312.46, the S&P 500 (.SPX) fell 8.92 points, or 0.21%, to 4,188 , 13 and the Nasdaq Composite (.IXIC) lost 4.00 points, or 0.03% to 13,657.17.

Energy (.SPNY), down 2.04%, was the weakest sector of the day, with Exxon Mobil Corp (XOM.N) losing 2.26% as the biggest weight on the S&P 500 , after sources said that BlackRock Inc (BLK.N) had backed several candidates from hedge fund Engine No.1 to join the energy giant’s board. Read more

The front facade of the New York Stock Exchange (NYSE) is seen in New York, United States, May 4, 2021. REUTERS / Brendan McDermid / File Photo

Real estate (.SPLRCR), up 0.31%, was a positive, benefiting from the break in rates. Data on Tuesday showed that sales of new single-family homes in the United States fell in April as prices surged amid a tight supply of homes, while a separate report showed U.S. consumer confidence had changed little and was approaching last month’s figure which was the highest since February 2020. Read more

The S&P 500 sits around 1% of its all-time May 7 high as attention turns to the US personal consumption expenditure report, the Fed’s preferred measure of inflation, which will be released on Thursday. A much higher than expected reading in consumer prices two weeks ago rekindled inflation fears and fueled market volatility.

Shares of the airlines, which are part of the “reopening” trade, rose after United Airlines (UAL.O) and Hawaiian Holdings (HA.O) released optimistic air traffic and ticket sales estimates that raised their shares 1.50% and 3.59%.

Boeing (BA.N) rose 1.39% after the aircraft leasing business SMBC Aviation Capital agreed to purchase an additional 14 737 MAX jets. Read more

Lordstown Motors Corp (RIDE.O) fell 7.45% after the electric vehicle startup said its Endurance truck’s 2021 production would be half past expectations and needed additional capital to run its plans. Read more

Falling issues outnumbered those that rose on the NYSE by a 1.53 to 1 ratio; on the Nasdaq, a ratio of 1.77 to 1 helped the declines.

The S&P 500 posted 29 new 52 week highs and 1 new low; the Nasdaq Composite recorded 75 new highs and 51 new lows.

Volume on the U.S. exchanges was 9.48 billion shares, compared to an average of 10.41 billion for the full session over the past 20 trading days.

Our standards: Thomson Reuters Trust Principles.

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