New York stock markets closed in the red, victim of a double whammy: the higher-than-expected rise in retail sales in the US and bad economic signs coming from China.
New York stock markets ended Tuesday in the red, pressured by a higher-than-expected rise in US retail sales, which was seen as a signal that the Federal Reserve (Fed) may maintain the restrictive policy for a longer period, to consider inflation. Finally “tamed”. On the other hand, the bad economic data coming out of China makes investors uncomfortable about some sectors that depend on the second largest economy in the world, as customers and suppliers.
All major indices fell by more than 1%. The Dow Jones Industrial Average fell 1.02% to 34,946.39 points, while the broad S&P 500 lost 1.16% to end the day at 4,437.86 points. The Nasdaq Technology Index lost 1.14%, closing at 13,631.05 points.
US retail sales rose 0.7% in July from the previous month, to $696.4 billion. Analysts expected an increase of only 0.4%.
The consumption strength was seen by the market as a “blank check” so that the Fed (Federal Reserve) could maintain its restrictive monetary policy for a longer period of time, with higher interest rates to cool the economy.
Among the giant technology companies, Apple’s share fell 1.12%, Amazon lost 2.06%, Alphabet (Google’s parent company) lost 1.18%, while Microsoft fell 0.67%, and Mita 1.38%.
Home Depot, which performed better than expected, saw its shares gain 0.66%.
Tesla, in turn, fell 2.84% after announcing cheaper versions but with less autonomy than two more expensive models for the North American market.
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