Stocks tumbled on Monday as Wall Street measured inflation risks and what the implication of a global tax deal would have for America’s largest tech companies.
The Dow Jones Industrial Average fell 147 points, or 0.43%, to 34,608, the S&P 500 was down 0.24% and the Nasdaq was up 0.18% as investors weighed the impact of a tax deal. global corporate 15% secured by the G-7 over the weekend. would have on the tech giants.
The G-7 deal, while certainly historic, must also find the approval of recalcitrant G-20 leaders before it has any impact on tech giants like Apple. (AAPL) – Get report, Alphabet (GOOGL) – Get report Google, Facebook (full board) – Get report and Amazon (AMZN) – Get report. That process could take several years.
Stocks closed higher on Friday and tech stocks rose after the United States added fewer jobs than expected to payrolls in May, leading investors to believe the Federal Reserve will not cut its $ 120 billion in purchases. monthly assets in the short term. The S&P 500 closed at 4,229, just short of a record.
The Dow Jones gained 0.7% for the week, the S&P 500 was up 0.6% and the Nasdaq added 0.5%.
Wall Street this week will await Thursday’s consumer price report for new signs of inflationary risks. The Federal Reserve has argued that any spike in inflation as the economy recovers from the coronavirus pandemic will be transitory.
Treasury Secretary Janet Yellen said President Joe Biden should go ahead with his $ 4 trillion spending plans, even if they spike inflation in the next year. He also told Bloomberg in an interview that slightly higher interest rates would be an advantage.
“If we end up with a slightly higher interest rate
environment, it would actually be an advantage for society’s point of view
view and point of view of the Fed, ”Yellen told Bloomberg.
The benchmark 10-year Treasury yield rose slightly to 1.57% on Monday.
“So while we remain at record levels, keep in mind that it is normal for the market to take a little breather at the beginning of the week,” said Chris Larkin, managing director of trading and investment products at E * Trade. “And while inflation fears may be on the back burner for now, the CPI data released on Thursday could put it back in the spotlight.”
Biogen (BIIB) – Get report It was rising Monday after the Food and Drug Administration cleared the company’s Alzheimer’s drug aducanumab.
The approval makes aducanumab the first new treatment for Alzheimer’s disease in nearly two decades.
Tesla (TSLA) – Get report declined on Monday amid lingering concerns about the pace of car sales in China and a decision by founder and CEO Elon Musk to unplug the top-end version of the company’s Model S Plaid sedan.
Bitcoin was down on Monday, dropping 1.18% to $ 35,807. The world’s largest cryptocurrency set a record of more than $ 64,000 in mid-April.
El Salvador’s President Nayib Bukele said he was drafting a bill to convert Bitcoin into legal tender alongside the US dollar in the Central American nation.