Stocks on Wall Street extended their recent run of losses on Tuesday as investors reviewed disappointing earnings reports and looked ahead to the release of an inflation snapshot closely watched by the Federal Reserve.
The S&P 500 fell 0.4 per cent, marking its fourth consecutive drop. The Dow Jones Industrial Average fell 0.2 per cent and the Nasdaq slid 1.2 per cent. The Australian sharemarket is set to open lower with futures at 6.53am AEST pointing to a fall of 40 points or 0.6 per cent. CBA results are out this morning. On Tuesday, the ASX advanced 0.1 per cent to a two-month high.
The benchmark S&P 500 declined for a fourth-straight session.Credit:Bloomberg
Smaller company stocks also gave up ground, sending the Russell 2000 index 1.5 per cent lower.
Technology companies and retailers were the biggest drags on the market, outweighing gains in energy, financials and elsewhere. Bond yields rose broadly.
The selling likely reflects profit-taking by investors ahead of Wednesday’s consumer price index report, said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.
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The headline figure is expected to show a smaller annual increase in July than in June, according to FactSet. But core inflation, which strips out volatile energy and food costs, leaving rent and other big-ticket purchases, is expected to come in higher than in June.
“With core (inflation) being the more important of the two, the fact that it hasn’t peaked yet and may not peak for a few months to come, given how much momentum we’re seeing in rent increases, in wage increases, that’s going to be the real problem for the Fed,” Samana said. “How to cool that down, especially when the economy is adding as many jobs as it is?”
The S&P 500 fell 17.59 points to 4,122.47. The Dow slipped 58.13 points to close at 32,774.41. The Nasdaq dropped 150.53 points to 12,493.93. The Russell 2000 ended down 28.31 points at 1,912.89.