Following a Drop in Retail Sales, the Dow and S&P 500 Have Broken Their Five-day Winning Streaks

On Tuesday, the stock market in the United States tumbled from record highs as investors reacted to weak retail sales figures.

The Dow Jones Industrial Average dropped 282.12 points, or 0.79 percent, while the S&P 500 dropped 0.71 percent, ending five-day winning streaks after closing at record highs the day before. The Nasdaq Composite lost 0.93 percent on Monday, falling for the second day in a row to begin the week.

The stock market reacted to news from the Commerce Department that retail sales decreased by 1.1 percent in July.

“When we’re looking at the expectations for consumer strength going forward, some of the edge is being taken off by the rise in the delta variant,” Yung-Yu Ma of BMO Wealth Management told CNBC. “These challenges aren’t going to go away quickly.”

Home Depot stock fell 4.32% as it reported comparable sales for the second quarter rose 4.5% more than a full percentage point below analysts’ estimates.

Walmart stock also dipped slightly, falling 0.033% after the company reported gains in groceries and a strong start to the back-to-school season.

Tech stocks also suffered Tuesday as Facebook fell 2.21%, Amazon dropped 1.73%, Google‘s parent company, Alphabet, declined 1.19% and Apple stock closed down 0.62%.

Source: UPI

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