Wall Street stocks fell on Friday, retreating from better inflation data as markets weighed the fallout from a U.S. presidential debate in which incumbent Democrat Joe Biden’s performance was widely panned.
Stocks had initially risen after an improved reading in the personal consumption expenditures price index, a closely watched benchmark that boosted the chances of a rate cut by the U.S. Federal Reserve.
However, US Treasury yields rose as the day progressed, weighing on the market in the last session of the first half of the year.
The Dow Jones Industrial Average fell 0.1% to 39,118.86.
The broad-based S&P 500 fell 0.4 percent to 5,460.48, while the tech-rich Nasdaq Composite Index fell 0.7 percent to 17,732.60.
However, all three major indexes are up impressively in 2024 so far, with the S&P 500 up more than 14%.
The US Fed’s favored measure of inflation eases slightly in May
Biden’s performance in a debate with his predecessor Donald Trump was widely criticized by observers, who said it raised concerns that the president is too old to run again.
“There is a lot of speculation about what may or may not happen, but it’s fair to say that some additional uncertainty has been introduced into the presidential race,” said a note during the meeting from Briefing.com.
“This uncertainty could play a role in the market’s inability to sustain stronger earnings along with quarter-end activity.”
Among individual companies, Nike plunged nearly 20 percent as it cut its outlook for fiscal 2025, citing a number of headwinds, including weaker online sales and a mixed outlook for China.
Big tech names were also under pressure, with Amazon, Microsoft, Apple and Google parent Alphabet losing more than one percent.
The UK’s economic recovery is improving as the election approaches
jmb/mlm
© Agence France-Presse
Source: AFP