Wall Street Today: Stocks close lower on economic worries

Moomoo Recap US joined discussion · Jul 8, 2021 19:31

Wall Street Today: Stocks close lower on economic worries

Stocks to extend drop as bonds jump on growth risk

Asian shares look poised to follow U.S. equities lower Friday, with the rally in Treasuries gaining pace on growing anxiety that the spread of Covid-19 variants could hamper the global economic recovery.

"It feels like we have moved from thinking inflation will be transitory, to fearing growth will be transitory," said Art Hogan, chief market strategist at National Securities.

'A Narrative of Fear': plunging stocks finally heed bond signal

Growth is slowing while stock valuations expand and breadth narrows. Throw in a surprising drop in Treasury yields and the result is volatility.

The S&P 500 Index fell as much as 1.6% on Thursday, the most since May, as all major industries slipped. Commodity and financial shares led the retreat, the latest sign that the once-hot reflation trade is sputtering, with the delta variant of coronavirus quickly spreading and talk about monetary stimulus heating up in China.

Stocks close lower on economic worries

U.S. stocks tumbled Thursday, while Treasury yields sank for a fourth day, as investors unwound bets on a spell of high growth and inflation.

All three major U.S. stock indexes suffered their worst daily performance in nearly three weeks as investors across the globe retreated from risky assets. The broad-based selloff across U.S. equities marked a sharp reversal from last week, when indexes drifted higher, notching repeated records.

China car sales fall with chips in short supply

China's car sales snapped an 11-month streak of year-over-year growth as demand bolstered by a strong economic recovery collided with a global semiconductor shortage.

Sales of passenger cars in June were down 5.1% from a year earlier to 1.58 million vehicles, the China Passenger Car Association said Thursday. April-June sales were up 2.3% from the same period last year, when the market began to recover from a nationwide pandemic lockdown.

New Covid outbreaks a top risk to economic recovery, OECD chief says

New outbreaks of Covid-19 remain one of the top risks to a global economic recovery, the OECD's secretary-general has warned, calling for developed nations to support less-developed nations with their vaccination programs.

Pfizer says it is developing a Covid booster shot to target the highly transmissible delta variant

$Pfizer(PFE.US)$and $BioNTech(BNTX.US)$announced Thursday they are developing a Covid-19 booster shot intended to target the delta variant as concerns rise about the highly transmissible strain that is already the dominant form of the disease in the United States.

Global stocks drop as investors focus on slowing growth

Stock markets dropped on Thursday on rising concerns about prospects for the global economy, following days of sharp moves in government bonds that hinted at slower growth and inflation than previously expected.

Equities fell first in Asia before the negative mood spread into Europe and then to Wall Street — a move analysts blamed on expectations that US economic growth is about to peak at the same time as signs emerge of a slowdown in China.

Billion dollar 'unicorns' hit record numbers as valuations surge

Private investors assigned billion-dollar valuations to a record 136 start-ups between April and June, according to the data service CB Insights, more than the total for all of last year. The US produced the majority of the billion-dollar private companies, which included the social calendar app IRL and financing marketplace Pipe. Asia contributed 33 during the quarter, compared to 29 for the full year in 2020.