Stocks

Wall Street's subdued finish fails to detract from strong August

Reuters August 31 | Updated on September 01, 2021

Dow, Nasdaq inch lower

Wall Street finished marginally lower on Tuesday, although the slightly subdued ending to August failed to detract from a strong monthly performance by its three main indexes, in what is traditionally regarded as a quiet period for equities.

Having all posted lifetime highs in the second half of the month, including four record closings in five sessions for the S&P 500 prior to Tuesday, the three benchmarks were weighed by technology stocks on the final day.

For the S&P, which rose 2.9 per cent in August, it was a seventh straight month of gains, while the Dow and the Nasdaq advanced 1.2 per cent and 4 per cent, respectively, since the end of July.

On Tuesday, the Dow Jones Industrial Average fell 39.11 points, or 0.11%, to 35,360.73, the S&P 500 lost 6.11 points, or 0.13%, to 4,522.68 and the Nasdaq Composite dropped 6.66 points, or 0.04%, to 15,259.24.

The performance reflects the level of investor confidence in US equities derived from the Federal Reserve's continued dovish tone toward tapering its massive stimulus program.

While a strong recovery in economic growth and corporate earnings have boosted US stocks, investors are concerned about rising coronavirus cases and the path of Fed policy.

US consumer confidence fell to a six-month low in August,according to survey data from the Conference Board on Tuesday,offering a cautious note for the economic outlook.

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Technology stocks have continued to garner interest from investors in recent days, given the benefits which lower rates have on their future earnings, although the sector's indexwas among the worst performers on Tuesday.

Shares of Apple fell 0.8 per cent after hitting a lifetimehigh in the previous session, while Zoom Video Communications Inc tumbled 16.7 per cent as it signalled a faster-than-expected easing in demand for its video-conferencing service after a pandemic-driven boom.

Seven of the 11 major S&P sectors retreated. Among those that did not were the real estate and the communications services indexes, which closed atrecord highs.

On Tuesday, the Dow Jones Industrial Average fell 39.11 points, or 0.11%, to 35,360.73, the S&P 500 lost6.11 points, or 0.13%, to 4,522.68 and the Nasdaq Composite dropped 6.66 points, or 0.04%, to 15,259.24.

Published on September 01, 2021

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