Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wall Street closes lower as inflation fears prompt tech sell-off

Stock MarketsMay 10, 2021 06:11PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The front facade of the New York Stock Exchange (NYSE) is seen in New York City, U.S., May 4, 2021. REUTERS/Brendan McDermid

By Stephen Culp

NEW YORK (Reuters) - Wall Street closed lower on Monday as inflation jitters drove investors away from market-leading growth stocks in favor of cyclicals, which stand to benefit most as the economy reopens.

Industrial and healthcare shares limited the Dow's decline but the blue-chip average reversed course late in the session to snap a three-day streak of record closing highs.

"The market leadership is not doing all that well this year," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. "There's been a general rotation away from growth to other parts of the market."

A demand resurgence is colliding with strained supply of basic materials, helping to fuel inflation worries.

"Once the supply lines are rebuilt this will go away. But it's going to take some time," Nolte added. "It's different from flipping on a light switch."

The break-even rate on five-year and 10-year U.S. Treasury Inflation-Protected Securities (TIPS) touched their highest levels since 2011 and 2013, respectively.

"There's still some push and pull as to whether the market believes inflation is transitory or something that's going to stick around," Nolte said.

Inflation concerns will be in the minds of investors when the Labor Department releases its latest CPI report on Wednesday.

A shutdown to halt a ransomware attack on the Colonial Pipeline entered its fourth day, hobbling a network which transports nearly half of the East Coast's fuel supplies.

The Dow Jones Industrial Average fell 34.94 points, or 0.1%, to 34,742.82, the S&P 500 lost 44.17 points, or 1.04%, to 4,188.43 and the Nasdaq Composite dropped 350.38 points, or 2.55%, to 13,401.86.

Of the 11 major sectors in the S&P 500, six closed red. Tech was the biggest loser, sliding 2.5%.

First-quarter reporting season has entered the home stretch, with 439 of the companies in the S&P 500 having reported as of Friday. Of those, 87% have beaten consensus expectations, according to Refinitiv IBES.

Analysts now see year-on-year S&P earnings growth of 50.4% on aggregate, more than double the rate forecast at the beginning of April and significantly better than the 16% first-quarter growth expected on January 1, per Refinitiv

Hotel operator Marriott International (NASDAQ:MAR) Inc missed quarterly profit and revenue expectations due to weak U.S. bookings which offset a rebound in China. Its shares fell 4.1%.

After the bell, its rival Wynn Resorts (NASDAQ:WYNN) Ltd missed quarterly earnings and revenue estimates. Its shares were up in after-hours trading.

Electric vehicle stocks put on the brakes, with Tesla (NASDAQ:TSLA) Inc down 6.4% and Fisker off 9.0% after Workhorse Group missed quarterly revenue expectations. Workhorse lost 14.9% on the day.

FireEye (NASDAQ:FEYE) rose 1.2% after industry sources identified the cybersecurity firm as among those helping Colonial Pipeline recover from the recent cyberattack.

Declining issues outnumbered advancing ones on the NYSE by a 1.88-to-1 ratio; on Nasdaq, a 3.24-to-1 ratio favored decliners.

The S&P 500 posted 223 new 52-week highs and no new lows; the Nasdaq Composite recorded 208 new highs and 148 new lows.

Volume on U.S. exchanges was 10.97 billion shares, compared with the 10.20 billion average over the last 20 trading days.

Wall Street closes lower as inflation fears prompt tech sell-off
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (11)
Jacob Steinschlag
Jacob Steinschlag May 10, 2021 7:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
if there were Inflation fears the 'lofty' valuations of growth wouldn't be so bad. Growth would actually benefit from a runaway inflation as to cyclials would be utterly destroyed.
Jari Mustonen
Jari Mustonen May 10, 2021 6:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lies lies and manipulation with algos. No fundamentals matter. Just hedge funds with their games. US stock markets are a joke.
Semih Unalan
Semih Unalan May 10, 2021 5:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Complete bs. Inflation fears with inflation at below 2%. As if the world will collapse if inflation exceeds even 10 percent. In my country we have 20% inflation and we are happy that it is not 30% 🤣
Adam Mohr
Adam Mohr May 10, 2021 5:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
inflation has never been below 2 percent
Bulent Ok
Bulent Ok May 10, 2021 5:49PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Crooks at it again... Wiped out 10% of my holdings... Discusting creatures... All of you.. Goldman to the every other rat.. Mannupulated financial system... Nothing else.
Semih Unalan
Semih Unalan May 10, 2021 5:49PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Patience is key
Kareem Sultan
Kareem Sultan May 10, 2021 5:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this is not more than dirty play
Larry DeAngelis
Larry DeAngelis May 10, 2021 1:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
All a bunch of excuses for a rigged market by the algos and Goldman. Just rehashing the same BS!
perplexed76 .
perplexed76 . May 10, 2021 12:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Gamblers are necessary for liquidity they said. Now gamblers are kings of the markets.
Mitchel Pioneer
Mitchel Pioneer May 10, 2021 12:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
More air in the most criminally inflated bubble in financial history.
Ronald Warren
Ronald Warren May 10, 2021 11:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Raymond James is an ignoramus. I'm paying more for everything I touch/everywhere I go!!
CHAD TENDIES
CHAD TENDIES May 10, 2021 9:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The Dow isn’t going up in value, the dollar is going down in value.
Sandor Gruber
Sandor Gruber May 10, 2021 9:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Welcome to Las Vegas Stock Market....
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email