Sumary of Wall St slides on worries over US recovery:
- Credit: NurPhoto/NurPhoto via Getty ImagesShare to FacebookShare to TwitterEmail UsCopy the LinkWall Street has lost ground as economic uncertainties and the increasing likelihood of a US corporate tax rate hike dampened investor sentiment and prompted a broad sell-off despite signs of easing inflation.
- So far this month the S&P 500 is down nearly 1.8 per cent even as the benchmark index has gained more than 18 per cent since the beginning of the year.
- ”The advent of the highly contagious Delta COVID-19 variant has driven an increase in bearish sentiment regarding the recovery from the global health crisis, and many now expect a substantial correction in stock markets by the end of the year.
- ”The CPI report delivered a lower-than-consensus August reading, a deceleration that supports Federal Reserve Chairman Jerome Powell’s assertion that spiking inflation is transitory and calms market fears that the US central bank will begin tightening monetary policy sooner than expected.
- US Treasury yields dropped on the data, which pressured financial stocks, and investor favour pivoted back to growth at the expense of value.
- The long expected corporate tax hikes, to 26.5 per cent from 21 per cent if Democrats prevail, are coming nearer to fruition with US President Joe Biden’s $US3.5 trillion ($A4.8 trillion) budget package inching closer to passage.