NEW YORK, New York – U.S. stocks on Tuesday were dented by fears over the Covid-19 Delta variant, and the carnage it is causing to the U.S. and global economy.
The Nasdaq Composite however managed a new record high as technology stocks remained in favor despite the overall concern about the economy.
“The hurdle for strong consumption growth going forward appears much higher: the Delta variant is already weighing on Q3 growth, and fading fiscal stimulus and a slower service sector recovery will both be headwinds in the medium term,” Goldman Sachs said in a note circulated to clients on the weekend, according to CNBC.
“We see a bumpy September-October as the final stages of a mid-cycle transition play out,” the note penned by a team headed by Andrew Sheets said. “We continue to think this is a ‘normal’ cycle, just hotter and faster, and our cycle model remains in ‘expansion’. But the next two months carry an outsized risk to growth, policy, and the legislative agenda,” the note said.
At the close, on Tuesday the Dow Jones industrials had lost 269.09 points or 0.76 percent at 35,100.00.
The Standard and Poor’s 500 dropped 15.40 points or 0.34 percent to 4,520.03.
The Nasdaq Composite, going against the trend, advanced 10.81 points or 0.07 percent to 15,374.33.
Meantime the U.S. dollar roared back to life. The euro fell to 1.1841 approaching the New York close Tuesday. The British pound sank to 1.3784. The Japanese yen dropped to 110.29. The Swiss franc declined to 0.9195.
The Canadian dollar was sharply lower at 1.2648. The Australian dollar fell half a cent to 0.7385. The New Zealand dollar did worse, sliding to 0.7096.
On overseas equity markets, the FTSE 100 in London fell 0.53 percent. The German Dax slumped 0.56 percent. The Paris-based CAC 40 dipped 0.26 percent.
On Asian markets, the Shanghai Composite advanced 54.73 points or 1.51 percent to 3,676.59, Business Sun reported.
The Hang Seng in Hong Kong accelerated 222.82 points or 0.85 percent to 26,386.45.
In Japan, the Nikkei 225 added to gains made over the previous two trading sessions, in response to the resignation of Japanese Prime Minister Yoshihide Suga. The key index rose 256.25 points or 0.86 percent to 29,916.14.
In Australia, the All Ordinaries inched up 2.60 points or 0.03 percent to 7,826.40.