(Bloomberg) – Shares retreated after hawkish remarks from Federal Reserve officials and growing concern that another wave of the pandemic in Europe could cause more lockdowns.
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Economically sensitive companies like energy, financials and industrials stocks fell, while the technology-heavy Nasdaq 100 outperformed major benchmarks. The Treasury curve flattened after two central bank board members said the Fed may need to consider accelerating the cut to its bond buying program amid strong economic growth and rising inflation. The dollar has gone up.
As stocks near record highs, supported by strong earnings, a resurgence of the virus could slow the economic recovery at a time of raging inflation. Austria became the first country in Western Europe to impose widespread restrictions. Parts of Germany have also closed non-essential businesses, while the Netherlands has already ordered stores and bars to close early.
“This has been another week of gravity-defying stocks in a tense environment,” said Callie Cox, senior investment strategist at Ally Invest. “The road has not been easy, however. Investors are still digesting the risk of runaway inflation, accompanied by a peak in Covid and a new wave of restrictions in Europe. “
President Joe Biden’s signing plan to extend the social safety net, tackle climate change and rewrite tax policies was passed by the House on Friday morning as President Nancy Pelosi united resistant Democrats to send legislation in the Senate, where its fate remains uncertain.
Read: Virus can prove elephant in room failed strategists
Oil posted its biggest weekly decline since August amid renewed foreclosure prospects, just as major consuming countries look to add an emergency supply to the market.
Some highlights of the company:
Pfizer Inc. and Moderna Inc.’s Covid-19 booster injections have received unanimous support from public health advisers for use in all American adults.
Boeing Co. is further slowing production of 787 Dreamliners, Dow Jones reported.
Read: FAA surveillance of Boeing 787 needs surveillance review, lawmakers say
Foot Locker Inc. reported unestimated sales as a tight supply chain puts pressure on the sneaker retailer ahead of the holiday shopping season.
For more market analysis, read our MLIV blog.
Some of the main movements in the markets:
Actions
The S&P 500 fell 0.1% at 4 p.m. New York time
The Nasdaq 100 rose 0.5%
The Dow Jones Industrial Average fell 0.7%
The MSCI World index fell 0.3%
Currencies
Bloomberg Dollar Spot Index rose 0.4%
The euro fell 0.7% to $ 1.1288
The British pound fell 0.4% to $ 1.3441
The Japanese yen rose 0.2% to 113.99 per dollar
Obligations
The yield on 10-year treasury bills fell five basis points to 1.54%
German 10-year yield fell seven basis points to -0.34%
UK 10-year yield fell five basis points to 0.88%
Merchandise
West Texas Intermediate crude fell 3.7% to $ 76.10 a barrel
Gold futures fell 0.7% to $ 1,851.30 an ounce
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