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Concerns about the delta variant and the unrest in Afghanistan weighed on the American stock markets. Chinese tech companies were hit hardest.
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The S&P500 sees a streak that saw five consecutive gains interrupted Tuesday. The barometer dropped 0.7 percent. Dow Jones lost 0.8 percent. The Nasdaq tech exchange had to fight even harder with a closing loss of 1.1 percent. The US stock markets thus experienced their strongest loss in a month. The blows were greatest at Chinse tech. The Nasdaq Golden Dragon index, which pools Chinese tech companies on Wall Street, closed 2.4 percent lower.
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The Chinese government released a series of new draft rules to curb the power of tech companies. For example, companies are no longer allowed to use fake reviews to promote products. There will also be protection in terms of brand reputation and intellectual property.
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Economic data
A number of economic data plays an additional part in the market. Homebuilder sentiment plunged to a 13-month low in August amid high costs and ongoing supply chain shortages.
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US retail sales fell more than forecast in July, reflecting a steady shift in spending towards services and an indication that consumers may become more price conscious as inflation picks up.
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Although factory production rose the most in four months, manufacturers continued to experience higher input prices and near-record job openings.
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Investors are looking forward to next week’s Jackson Hole meeting for an update on Federal Reserve policy. “We are in a waiting period for Jackson Hole,” wrote Craig Erlam, market analyst at Oanda. While a fair amount of data will be released this week, some of which may carry a little more weight than others, right now it’s all about the Fed in these markets. That will probably not change unless the delta situation deteriorates dramatically.’
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Biggest Moves
Home Depot
was hit by 4.3 percent after numbers that were below expectations.
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DXC Technology
was down 11.8 percent after a sell recommendation from JPMorgan.
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Kroger
won 4.5 percent after top investor Warren Buffett increased his stake in the department store chain.
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Tesla
lost 3 percent. Investor Michael Burry – known from the film ‘The Big Short’ – is betting on a heavy decline at Tesla and Cathie Wood’s tech tracker Ark Invest.
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Alibaba
, Tencent
en Baidu
lost up to 5 percent in the face of tightened surveillance by the Chinese government.
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