© Reuters. File: June 22, 2022 A trader works at the New York Stock Exchange (NYSE) site in New York City. REUTERS / Brendan McDermid
By Sreyashi Sanyal and Amruta Contegar
(Reuters) – Wall Street key indices fell after a high opening on Monday, losing steam in a rally last week to ease concerns about inflation, with higher growth stocks leading the slump.
Dennis Dick, a private trader at Pride Trading LLC in Las Vegas, said: “We had a good rally last week, so this morning we see a slight gain.
“Shares that were very high last week are hitting hard here today.”
The Tech-Heavy Index, which rose 7.5% last week, fell 0.7%, leading the way in three key indices.
Investors are betting that oil prices will rebound from a three-month high in June to ease inflationary pressures and the Federal Reserve to moderate its aggressive policy austerity.
However, data on Monday showed that new orders for US-made capital goods and exports rose sharply in May, indicating sustained strength in trade spending on equipment in the second quarter.
Oil prices also moved back to positive territory, raising the S&P 500 energy index by 2.2%, restraining expectations of lower inflation on the back of lower energy prices. [O/R]
The US Federal Reserve has rapidly raised interest rates to control 40-year high inflation, raising fears that its actions could plunge the world’s largest economy into recession.
After the benchmark earlier this month recorded a 20% drop from its January high to stabilize the bear market, investors are trying to measure when the market will hit its bottom.
At 10:11 am, the ET was down 76.62 points, or 0.24%, at 31,424.06, the S&P 500 was down 13.94 points, or 0.36%, at 3,897.80, while the Nasdaq Composite was down 78.18 points, or 78.41%, or 5.91%.
Shares of Robinhood (NASDAQ 🙂 rose 0.6% after media reports that Goldman Sachs (NYSE 🙂 upgraded retailer shares from “selling” to “neutral”.
However, Goldman Sachs downgraded Coinbase (NASDAQ 🙂 Global Inc’s rating from “Buy” to “Sell”, reducing the share of cryptocurrency exchanges by 9.4%, according to media reports.
The 1.03-to-1 ratio in the NYSE and the 1.31-to-1 ratio in the Nasdaq are more of a declining issue than their predecessors. The S&P Index hit a new 52-week high and 29 new lows, while the Nasdaq hit 16 new highs and 41 new lows.
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