Economic worries slow investors: Record series on Wall Street stopped

Economic worries put a brake on investors
Record series stopped on Wall Street

After new records on the previous day, the indices on Wall Street are falling more sharply. Among other things, the disappointing retail data in July contributed to this.

Weak retail data and concerns about a further economic recovery in the United States have dragged the US stock exchanges from their record price. The US retailers lost a surprising amount of sales in July, and the home improvement chain Home Depot also failed to meet expectations with its quarterly results for the first time in two years, sending its shares down. Tech heavyweights such as Apple, Google parent Alphabet and Amazon also lost ground – China’s increased access to the country’s technology industry and possible effects beyond the People’s Republic also played a role here.

the Dow Jones Index lost 0.8 percent and closed at 35,343 points, the S&P 500 lost 0.7 percent (4,448 points) and the Nasdaq-Composite 0.9 percent and 14,656 points.

US consumers had spent less money on vehicles, clothing, and sporting goods in particular. Shares of Home Depot lost 4.5 percent, including the competitor Lowe’s gave way significantly. The pandemic-driven home improvement boom is apparently nearing its end.

Many investors are also paying their attention to the minutes of the latest Fed meeting, which will be released on Wednesday. Boston Fed President Eric Rosengren last noted that the Fed could begin scaling back its bond program if labor market data were strong for another month.

The increased access of the Chinese authorities to the billion-dollar technology industry in the country also caused uncertainty. The state authority for market regulation published an extensive draft ordinance for the Internet sector in the People’s Republic and is tightening the thumbscrews with it. The regulator stated, among other things, that companies are not allowed to use data or algorithms to direct data traffic or influence users’ decisions. Stockbrokers feared negative effects on e-commerce marketplaces and video portals.

The advance initially put Internet stocks listed in Hong Kong under pressure, but tech companies listed in the USA also gave way. The tracks from the Chinese music streaming provider Tencent Music lost around 12.3 percent. Even US companies like Microsoft noted lower. Meanwhile, in Europe, investors remained cautious for fear of a damper on the economic recovery. Investors anticipated a slowdown in global growth because the delta variant of the coronavirus is spreading more and more, especially in Asia, and vaccination rates are lower there. The Dax went out of trading on Tuesday with 15,922 points, hardly changed, the EuroStoxx50 was last 0.1 percent in the red at 4196 points.