Wall Street ends down for fear of a temperate recovery


par Stephen Culp

NEW YORK (Reuters) – The New York Stock Exchange ended sharply lower on Thursday, the day after the S & P-500 and Nasdaq hit records, as investors sold heavily amid uncertainties surrounding the pace of the rebound in the US economy.

The Dow Jones index fell 0.75%, or 259.86 points, to 34,421.93 points.

The larger S & P-500 lost 37.31 points, or 0.86%, to 4,320.82 points.

The Nasdaq Composite fell 105.28 points (0.72%) to 14,559.79 points.

As the bond market recovered, the three main Wall Street indices fell early in the session, before wiping out some of their losses but still ending down.

“It’s a normal withdrawal,” commented Brad McMillan, chief investment officer at Commonwealth Financial Network in Waltham, Massachusetts. “People are like ‘maybe things are not perfect’ and they take some money out, but I don’t think that’s the end of the hike.”

The US Federal Reserve (Fed) on Wednesday released the minutes of its June monetary policy meeting, “minutes” showing the central bank believes the economy has not fully recovered from the health crisis of the coronavirus.

Sensing loopholes in the recovery of the US economy, traders hedged short positions in the bond market. The yield on ten-year US Treasuries fell for the eighth consecutive session.

Data released today shows that weekly jobless claims in the US have increased slightly, a sign that the recovery in the US labor market remains fragile.

All major sectors of the S & P-500 changed in the day, particularly the financial sector.

The big banks are due to launch the publication of their quarterly results next week, while analysts expect profit growth at an annual rate of 65.4%.

(French version Jean Terzian)