Wall Street falls on reduced worries, Kabul blast

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A Wall Street sign is seen on the New York Stock Exchange (NYSE) in New York City, New York, USA, July 19, 2021. REUTERS / Andrew Kelly / File Photo

  • Coty increases after forecasting return to annual sales growth
  • Stores in US dollars shrink as transportation costs reach profit forecasts
  • Disabled Indices: Dow 0.27%, S&P 0.45%, Nasdaq 0.45%

August 26 (Reuters) – Major Wall Street indices fell to session lows on Thursday for fears of a faster reduction in the US Federal Reserve’s bond-buying program, and traders also pointed to a explosion in Kabul due to increased volatility.

After opening almost flat, the three main indices fell sharply.

An alleged suicide bomb exploded at Kabul airport and killed at least 13 people, including children. Read more

“Geopolitics doesn’t usually affect the market too much, but when a report like this comes out, it usually has a bit of movement,” said Randy Frederick, general manager of trade and derivatives at the Schwab Center for Financial Research.

Meanwhile, St. Louis Federal Reserve Chairman James Bullard told CNBC that the Fed is “merging” around a plan to start cutting $ 120 billion in monthly bond purchases and that he seemed skeptical about inflation moderation in 2022. read more

While many investors expect a possible slowdown in bond purchases, they will look for clues as to when and how the U.S. central bank will begin to shrink when Fed chief Jerome Powell says at the Jackson Hole economic symposium on Friday . Read more

“This is the time period when there is a recovery and strength in the economy,” said Brian Vendig, president, MJP Wealth Advisors in Westport, Connecticut.

“So acting now is a good thing, because we know there will still be an effect that will occur next year.”

US stocks have hit a series of all-time highs in recent sessions, driven by a stronger-than-expected earnings season and positive news about COVID-19 vaccines.

However, strategists have projected that the benchmark S&P 500 (.SPX) would end the year at 4,500 points, essentially unchanged, expecting economic recovery and profit growth to lose momentum.

The data showed that the U.S. economy grew slightly faster than initially thought in the second quarter, in a second estimate of GDP growth, while weekly unemployment demands rose 4,000 to 353,000 seasonally adjusted for in the week ending August 21st. Read more

At 10:56 am ET, the Dow Jones Industrial Average (.DJI) was down 95.65 points, or 0.27%, at 35,309.85, the S&P 500 (.SPX) was down 20.34 points, or 0, 45%, to 4,475.85, and the Nasdaq Composite (.IXIC) fell 68.33 points, or 0.45%, to 14,973.53.

Discount retailers Dollar General Corp (DG.N) and Dollar Tree Inc (DLTR.O) fell 5.3% and 11.2%, respectively, after warning of the benefits of higher transportation costs. Read more

NetApp Inc. (NTAP.O) added 5.6% as brokers raised their price targets on the shares of cloud data service provider after an optimistic first quarter result and a better-than-expected earnings outlook for 2022.

Reports from Devik Jain to Bengaluru; Edited by Saumyadeb Chakrabarty and Vinay Dwivedi

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