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New York Stock Exchange major indices all fell by 0.8%

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On the 10th (local time), the three major New York Stock Exchange indexes fell by about 0.8%.A weakening of investor sentiment has been attributed to concerns about stagflation, in which prices are soaring and the economy is declining.

On the 10th (local time), the three major New York stock market indexes fell by about 0.8%.

Dow Jones Industrial Average and S&P 500 fell for the fifth consecutive day, while Nasdaq fell for the third consecutive day.

Both the S&P 500 and Nasdaq fell on a weekly basis, while the Dow Jones also declined for the second week in a row.

CNBC reported that the Dow closed at 34,607.72, down 271.66 points (0.78%) from the previous day.

The S&P 500 fell 34.70 points, or 0.77%, to 4458.58, and the Nasdaq lost 132.76 points, or 0.87%, to 15,115.49.

In contrary to expectations, the Dow and S&P 500 have failed to close higher since the release of disappointing August employment trends on August 3.

Over the past week, the Dow was down 2.2%, the S&P 500 was down 1.7%, and the Nasdaq was down 1.6%.

A benchmark index for small and medium enterprises (SMEs), the Russell 2000, also dropped 21.58 points (0.96%) to 2,227.55.

Volatility on the New York Stock Exchange was also confirmed by an increase in the Chicago Options Exchange Volatility Index (CBOE), or VIX. The VIX rose 2.15 points (11.44%) to 20.95 on the day.

Founder and chief investment officer (CIO) of Creset Asset Management, Jack Avelyn, noted that the stock market is being adversely affected by a delta mutation in the new coronavirus infection (Covid-19).

Avelyn explained that the spread of the delta mutation has caused concerns about a slowdown in the U.S. economy, while inflation is on the rise.

The concerns for the U.S. Federal Reserve (Fed), which will hold a meeting of the Federal Open Market Committee (FOMC), the monetary policy-making body, on the 21st and 22nd, may be compounded.

The inflation rate is not caught up while the U.S. economic recovery is clearly slowing down due to the spread of the delta shift.

The Producer Price Index (PPI), released on the same day, increased 8.3% from a year earlier, recording the largest increase since statistics began to be compiled in 2010.

With the European Central Bank (ECB) deciding to taper its bond purchases on the 9th, markets are watching to see if the Fed will also decide to taper at the meeting, as expected.

In August, economists revised their forecasts to move the Fed’s decision to November, but since then, inflation indicators have continued to beat expectations, suggesting the possibility of a tapering decision within the month has increased.

Mark Happel, CIO of UBS Global Wealth Management, predicted that the Fed will fine-tune between hawks and doves, while tightening monetary policy to a level that does not damage the economy’s recovery or the stock market’s upward trend.

Meanwhile, on the same day, a U.S. federal court ruled that it was illegal to ban Apple’s in-app purchases.

Apple closed at $148.97, down $5.10 (3.31%) from the previous day, while the real price of a game company surged $0.52 (6.28%) to $8.80.

Additionally, App Loving shares gained $6.29 (8.85%) to close at $77.38.

For MetaNews.

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Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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