Stocks

Wall Street closes lower as inflation jitters spark broad sell-off

Reuters NEW YORK | Updated on May 12, 2021

Dow down 1.36%, and Nasdaq edges lower by 0.09%

US stocks closed lower on Tuesday as rising commodity prices and labour shortages fed fears that despite reassurances from the US Federal Reserve,near-term price spikes could translate into longer-term inflation.

While all three indexes pared their losses from session lows, the sell-off was fairly evenly dispersed across the sectors.

Economic data released on Tuesday from the Labor Department showed job openings at US companies jumped to a record high in March, further evidence of the labour shortage hinted by Friday's disappointing employment report.

The report suggests labour supply is not keeping up with surging demand as employers scramble to find qualified workers.

The Dow Jones Industrial Average fell 473.66 points,or 1.36%, to 34,269.16, the S&P 500 lost 36.33 points, or0.87%, to 4,152.1 and the Nasdaq Composite dropped 12.43 points, or 0.09%, to 13,389.43.

Of the 11 major sectors in the S&P 500, only materials ended the session green. Energy suffered the largest percentage loss, closing down 2.6%

The CBOE Volatility index, a measure of investor anxiety, closed at 21.85, its highest level since March 11.

Boeing Co lost 1.7% after the planemaker announceddeliveries of its 737 MAX fell to just four planes in April dueto an electrical problem.

Tesla Inc continued its slide, dropping 1.9% following the electric automaker's decision to expand its Shanghai plant owing to heightened US-China tensions.

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Declining issues outnumbered advancing ones on the NYSE by a 2.85-to-1 ratio; on Nasdaq, a 1.62-to-1 ratio favoured decliners.

The S&P 500 posted seven new 52-week highs and one new low;the Nasdaq Composite recorded 28 new highs and 224 new lows.

Published on May 12, 2021

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