Tue. Oct 26th, 2021

© Reuters. FILE PHOTO: A Wall Street poster appears outside the New York Stock Exchange in New York on October 28, 2013. REUTERS / Carlo Allegri

By Echo Wang

(Reuters) – US equities closed mostly lower on Wednesday, falling from a record high after data indicated a slowdown in employment growth in July and General Motors (NYSE 🙂 continued its worst day since early March.

GM shares fell 8.9%, underscoring the uncertainty facing global carmakers at a time of technological and economic turmoil. Shares of rival Ford Motor (NYSE 🙂 Co fell 5.0%.

Nine of the 11 S&P indices were lower as industrials and energy declined, as data showed U.S. private payrolls rose much less than expected in July, probably limited by the shortage of workers and raw materials.

The blue-chip Dow, heavily weighted against economically sensitive stocks, also declined.

The Nasdaq, which has had a strong technological level, slowed the trend after another report showed that activity in the US service industry jumped to a record high last month, suggesting that the economic recovery wider still was on its way.

“This morning’s ADP employment report (is a) big flaw … it has people really locked into tomorrow’s initial claims and then into Friday’s non-farm payroll report,” Ross Mayfield said. Baird’s investment strategist in Louisville, Kentucky. “For me, this is a big driver (of the current market).”

“In general, the continued evolution of COVID-19, the Delta variant over the past few weeks and months, a new classification of growth prospects” makes the market adapt to what it means for the inflation trade and the which means the bond market, Mayfield said.

After six consecutive months of gains, the benchmark S&P 500 has struggled to rise in August due to concerns about the pace of growth, as the economy rebounded from the depths of the recession driven by COVID-19 and the fears of higher inflation overshadowed stellar corporate gains. season.

Federal Reserve Vice President Richard Clarida said Wednesday that the central bank should be in a position to start raising interest rates by 2023.

However, adjacent technology and technology stocks such as Netflix Inc (NASDAQ 🙂 and Facebook Inc. (NASDAQ :), which usually work best when interest rates are lower, outperformed the overall market.

The focus now shifts to the Department of Labor’s monthly work report on Friday.

The drop of 323.73 points, or 0.92%, to 34,792.67, the S&P 500 lost 20.49 points, or 0.46%, to 4,402.66 and 19.24 points added, or 0.13%, to 14,780.53.

In earnings-related movements, BorgWarner Inc. (NYSE 🙂 fell even in exceeding profit expectations due to strong consumer demand for new vehicles, while Kraft Heinz (NASDAQ 🙂 Co. fell after warning margin pressure for higher ingredient prices.

Robinhood Markets Inc. (NASDAQ 🙂 jumped 50.4% as the interests of star fund manager Cathie Wood and small business traders set the shares for a fourth session of earnings after their unfortunate market debut. last week.

The volume of US stock markets was 9.781 billion shares, compared to the average of 9.71 billion in the full session of the last 20 trading days.

Declining problems outperformed NYSE advances by 2.02 to 1; on the Nasdaq, a 1.82-to-1 ratio favored declines.

The S&P 500 recorded 67 new highs of 52 weeks and 3 new lows; the Nasdaq Composite recorded 93 new highs and 107 new lows.

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