S&P 500, Dow on track for worst week in 2 months on recovery, taper
fears
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[August 20, 2021] (Reuters)
- U.S. stock index futures fell on Friday,
as concerns over a slowing economic recovery and the possible tapering
of monetary stimulus hurt economy-linked sectors and put the Dow and the
S&P 500 on course for their worst week since mid-June.
Oil majors Chevron Corp and Exxon Mobil Corp slipped 0.8% each, tracking
steep losses in crude prices, while shares of major Wall Street banks
dropped nearly 0.6% each in premarket trading. [O/R]
The S&P 500 energy sector is down about 7.6% this week, the most among
all the 11 major S&P sectors.
Industrial stocks, including Caterpillar Inc, Boeing Co, and 3M Co,
which generally perform better at a time of strong economic growth, shed
between 0.2% and 0.9%.
Global equities took a backseat this week, with U.S. stocks slipping
from record highs as downbeat economic data from China compounded
concerns regarding the outlook for U.S. stimulus.
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Minutes from the Federal Reserve's last policy meeting showed officials
largely expect to reduce the central bank's emergency monthly purchases
of $120 billion of Treasury bonds and mortgage-backed securities later
this year, amid a recovery in the jobs market.
Focus is now on the Fed's annual research conference in Jackson Hole,
Wyoming, next week for any read about the central bank's next steps.
At 7:01 a.m. ET, Dow e-minis were down 148 points, or 0.43%, S&P 500
e-minis were down 19 points, or 0.43%, and Nasdaq 100 e-minis were down
40.75 points, or 0.27%.
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![](../images/082021pics/2021-08-20T112815Z_1_LYNXMPEH7J0M7_RTROPTP_4_USA-STOCKS_small.JPG)
Signage hangs over the trading floor at the New York Stock Exchange
(NYSE) in Manhattan, New York City, U.S., August 19, 2021.
REUTERS/Andrew Kelly
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For the week, the blue-chip Dow and the benchmark S&P 500 are down about 1.7%
and 1.4% respectively, while the tech-heavy Nasdaq has fallen 1.9%, its worst
since mid-May.
Amazon.com, Microsoft Corp, Google-owner Alphabet Inc, Facebook Inc, Apple Inc
and Netflix Inc, which had led Wall Street's record rally from pandemic lows hit
last year, slid between 0.2% and 0.7%.
Deere & Co rose 1% after it beat Wall Street estimates for third-quarter revenue
and lifted its full-year earnings forecast on strong demand for farm and
construction equipment.
The Invesco Golden Dragon China ETF was set for its eighth straight weekly loss
- its longest losing streak in a decade - on concerns over China's widening
crackdown on sectors ranging from technology to luxury goods makers. E-commerce
giant Alibaba Holdings has lost about $76 billion of its market value in the
past four days and is headed for its worst week ever.
(Reporting by Devik Jain and Medha Singh in Bengaluru; Editing by Subhranshu
Sahu)
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