Wall Street closes a week of ups and downs with a sharp drop By Reuters

© Reuters. FILE PHOTO. A Wall Street traffic sign near the New York Stock Exchange in New York, USA

by Stephen Culp

NEW YORK, Sept 17 (Reuters) – US stocks closed lower on Friday on a widespread selloff that ended a week marked by good economic data, concerns about a corporate tax hike, the Delta variant COVID and possible changes to the Fed’s schedule to reduce asset purchases.

* All three major US stock indices fell. He was the one that suffered the biggest drop, as rising Treasury yields put pressure on market-leading growth stocks.

* They also posted weekly losses, with the S&P suffering its biggest two-week decline since February.

* “The market is grappling with the prospects of tighter fiscal policy due to tax hikes, and tougher monetary policy due to Fed tapering,” said David Carter, chief investment officer at Lenox Wealth Advisors.

* “Equity markets are also a little weaker due to today’s weak data on consumer sentiment,” added Carter. “It is causing concern that the Delta variant could slow economic growth.”

* A possible increase in corporate taxes, which could affect profits, also weighs on the markets, as leading Democrats aim to raise the maximum rate for companies to 26.5% from the current 21%.

* Although consumer confidence stabilized this month, it remains depressed, according to a report from the University of Michigan, as Americans postpone shopping while inflation remains high.

* Inflation is likely to be a major topic next week, when the Federal Open Market Committee holds its two-day monetary policy meeting. Market players will watch for changes in tone that may indicate a Fed reduction schedule.

* “It has been a week of mixed economic data and we are clearly focused on what will come out of the Fed meeting next week,” said Bill Northey, senior director of investments at US Bank Wealth Management.

* The Industrial Average fell 166.44 points, or 0.48%, to 34,584.88 units, while it lost 40.76 points, or 0.91%, to 4,432.99 units. The Nasdaq was down 137.96 points, or 0.91%, to 15,043.97.

* The S&P 500 ended the session below its 50-day moving average, which in recent years has proven to be a fairly solid support level.

(Report by Ambar Warrick. Edited in Spanish by Janisse Huambachano)

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