Market decline

Stocks mostly end lower as investors analyze data and market decline in China

US stocks fell on Thursday as investors weighed in mixed signals in the latest US economic data and a stock market pullback in China.

Major indices have lost ground this month as investors fear stocks may suffer a setback after climbing throughout 2021. Analysts are also examining how the spread of the Delta variant of Covid-19 could dampen growth economic.

“This can make consumers less confident about spending, for example, if they have some uncertainty about where the economy is heading based on what’s going on with workloads,” said Lisa Erickson, co -Head of the public procurement group at US Bank Wealth Management. .

The S&P 500 lost 6.95 points, or 0.2%, to 4,473.75. The Dow Jones Industrial Average lost 63.07 points, or 0.2%, to 34,751.32. The tech-rich Nasdaq Composite rose 20.39 points, or 0.1%, to 15,181.92.

While many recent sessions have seen losses for stocks, they haven’t been significant: the S&P 500 on Thursday recorded its 20th consecutive trading day without a 1% move – its longest period without a move of this magnitude since October 2019 to January 2020, according to Dow Jones Market Data.

New data added to cloud forecasts for economy. The number of Americans who applied for unemployment benefits for the first time rose in the week ending Sept. 11 to 332,000, from 312,000 the week before.

At the same time, retail sales rose 0.7% in August, a sign of resilience despite the Covid-19 outbreak caused by Delta. Economists polled by the Wall Street Journal had expected retail sales to decline.

“This summer and then in the fall it was all about Delta,” said Jim Smigiel, chief investment officer at asset management firm SEI. “We’ve been going back and forth and back and forth, and we’re seeing more of it today.”

The trading session in the United States followed another day of losses in China and Hong Kong, where indexes were hit by fears of an economic slowdown and debt problems with giant real estate developer China Evergrande Group .

Hong Kong’s Hang Seng fell 1.5% and China’s Shanghai Composite contracted 1.3%. Growth in a series of Chinese economic indicators fell sharply in August, as a new outbreak of the Covid-19 Delta variant and stricter government regulations in the real estate market affected consumer spending and the housing sector. lodging.

US retail sales increased in August, a sign of the resilience of the economic recovery despite the Delta variant.


Photo:

Richard Drew / Associated press

“Evergrande argued that there are so many vulnerabilities in the Chinese system and it is difficult to know where the Chinese government is intervening,” said Seema Shah, chief strategist at Principal Global Investors..

“It’s only that which weighs on confidence.”

In bond markets, the yield of the benchmark 10-year US Treasury index rose to 1.331% Thursday from 1.302% Wednesday. Yields increase as prices fall.

Gains in consumer discretionary stocks helped prop up the S&P 500, while the materials and energy sectors lagged, falling more than 1%.

Among individual stocks, DoorDash stocks gained $ 11.65, or 5.6%, to $ 221.50 after BofA Securities upgraded the stock to buy. Shares of Beyond Meat fell $ 2.56, or 2.3%, to $ 108.25 after Piper Sandler lowered the alternative meat maker to an underweight.

Elsewhere, the Stoxx Europe 600 gained 0.4%. Lagardère shares jumped 19% after media conglomerate Vivendi struck a deal to increase its stake in the French group, a move that opens the door to a full takeover.

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