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Tech slide pulls S&P 500 down for its 5th straight loss

September 10, 2021 GMT
In this photo provided by the New York Stock Exchange, floor traders, including Phyllis Arena Woods, right, gather in remembrance on the eve of September 11th, on the Exchange trading floor, Friday Sept. 10, 2021. (Courtney Crow/New York Stock Exchange via AP)
In this photo provided by the New York Stock Exchange, floor traders, including Phyllis Arena Woods, right, gather in remembrance on the eve of September 11th, on the Exchange trading floor, Friday Sept. 10, 2021. (Courtney Crow/New York Stock Exchange via AP)
In this photo provided by the New York Stock Exchange, floor traders, including Phyllis Arena Woods, right, gather in remembrance on the eve of September 11th, on the Exchange trading floor, Friday Sept. 10, 2021. (Courtney Crow/New York Stock Exchange via AP)

Stocks are opening higher on Wall Street Friday, clawing back some of the ground the market lost in this holiday-shortened week. The S&P 500 was up 0.3%. Technology companies had some of the biggest gains. Dave & Buster’s Entertainment soared 10% after the restaurant chain reported results that blew past analysts’ forecasts. Bond yields held steady even after the Labor Department reported that inflation at the wholesale level jumped 8.3% last month from a year ago, a sign that investors agree with the Federal Reserve’s assessment that the current burst of inflation will be temporary.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

World shares advanced Friday after President Joe Biden spoke by phone with China’s Xi Jinping.

Benchmarks rose in Paris, London, Tokyo, Shanghai and Hong Kong. The yield on the 10-year Treasury note was steady at 1.31% and U.S. futures were higher. Crude oil prices rose.

Biden initiated the 90-minute call with Xi, which centered on discussing the way ahead for the U.S.-China relationship. The White House said the leaders during the call agreed to engage “openly and straightforwardly” on issues where the nations are at odds and where there is agreement.

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“President Biden and Xi’s phone call has spurred hopes of a thaw in U.S.-China relations. That is ostensibly good for trade everywhere and spurred a decent rally in stocks across Asia,” Jeffrey Halley of Oanda said in a commentary.

Investors appeared to take in stride a decision by the European Central Bank on Thursday to dial back some of its massive emergency pandemic support for the economy as the 19 countries that use the euro rebound from the coronavirus recession.

Analysts said investors were reassured by ECB head Christine Lagarde’s insistence that the shift was only a “recalibration” of existing stimulus — not a signal that pandemic support is being phased out.

Germany’s DAX gained 0.1% to 15,643.96 and the CAC 40 in Paris rose 0.4% to 6,7089.48. Britain’s FTSE 100 picked up 0.3% to 7,047.34. Th future contract for the Dow industrials was trading 0.5% higher, while the future for the S&P 500 climbed 0.4%,

In Asian trading, Tokyo’s Nikkei 225 gained 1.3% to 30,381.84 while the Hang Seng in Hong Kong jumped 1.9% to 26,205.91. South Korea’s Kospi added 0.4% to 3,125.76. The Shanghai Composite index climbed 0.5% to 3,703.11.

Investors have been assessing the pace of economic growth amid worries that the rapid spread of the coronavirus delta variant will dampen consumer confidence and spending.

In New York, the S&P 500 fell 0.5%, its fourth straight drop, to 4,493.28. The Nasdaq pulled back 0.3%, to 15,248.25.

The Dow Jones Industrial Average fell 0.4% to 34,879.38.

Small company stocks fared better than the broader market. The Russell 2000 index gave up 0.60 points, or less than 0.1%, to 2,249.13.

Fed officials have indicated they expect to dial back on stimulus measures by year’s end, and Treasury Secretary Janet Yellen has warned Congress that she will run out of maneuvering room to prevent the U.S. from breaching the government’s borrowing limit in October unless the debt ceiling is raised.

In other trading, U.S. benchmark crude oil rose 73 cents to $68.87 per barrel in electronic trading on the New York Mercantile Exchange. It gave up $1.16 to $68.14 per barrel on Thursday.

Brent crude rose 89 cents to $72.34 per barrel.

The U.S. dollar rose to 109.96 Japanese yen from 109.73 yen. The euro was trading at $1.1842, up from $1.1825 late Thursday.

Stocks edged lower in choppy trading Friday, keeping major indexes on track to end this holiday-shortened week lower.

The S&P 500 was down 0.1% as of 2:21 p.m. Eastern. The benchmark index is down 1.1% for the week and on track for its fifth straight drop.

The Dow Jones Industrial Average, slipped 58 points, or 0.2%, to 34,820, and the Nasdaq composite shed an early gain, slipping 0.1%.

Health care, technology and communications stocks weighed on the market. Those losses offset gains by industrial stocks and a mix of retailers and other companies the rely on direct consumer spending.

Stocks have traded in a narrow range for several weeks as most investors are sitting on the sidelines waiting to get a fuller understanding of where the economy is headed and how the pandemic is impacting corporations.

“There isn’t any new good news coming, and that’s important because we’ve gotten a decent amount of good news that has flowed up until this point this year,” said Liz Young, head of investment strategy at personal finance company SoFi.

Investors got a negative piece of inflation data on Friday. Inflation at the wholesale level climbed 8.3% last month from August 2020, the biggest annual gain since the Labor Department started calculating the 12-month number in 2010.

Federal Reserve policymakers have said they believe inflation this year would be temporary and is a result of the economy recovering from the pandemic. However, persistently high inflation could force the Fed’s hand to start pulling back on its bond-buying program and low interest rate policy sooner than anticipated.

The bond market had a mild reaction to the inflation data, a possible sign that investors continue to agree with the Fed’s outlook. The yield on the 10-year Treasury note rose to 1.33% from 1.30%.

The pandemic remains in the forefront of investors’ minds, as hospitals fill up in the South and other parts of the country. President Joe Biden announced Thursday that companies with more than 100 employees would be required to have their employees vaccinated or do weekly testing, an announcement big companies have been willing to embrace.

“A lot of the pain was felt in August and that’s part of why September is going to be so choppy,” Young said. “I’m hopeful that some of the worst of that is behind us and we can move forward.”

The market is still trying to find reasons to go higher, she said, and the economy is also likely to keep grinding on because of the desire from consumers and companies to get back to a more normal way of operating.

Industries that have been hit hardest through the pandemic and are relying on a steady recovery have been struggling as COVID-19 cases rise with the highly contagious delta variant. Airlines slumped, with American Airlines shedding 4.8% and Delta Air Lines falling 2.8%.

Apple fell 2.7% after a federal judge ordered the iPhone maker to dismantle part of the competitive barricade guarding its closely run app store, which is one of its biggest moneymakers.

Restaurant and arcade operator Dave & Buster’s rose 2.7% after reporting solid financial results. Endo International surged 30.7% after settling opioid cases with the state of New York and two large counties in a $50 million deal.

Energy futures were mostly headed higher. The price of U.S. crude oil rose 2.3%, helping nudge energy stocks higher.

Stocks ended an up-and-down day lower on Wall Street, giving the S&P 500 its fifth consecutive loss and its first weekly decline after two weeks of gains. The benchmark index gave back 0.8% Friday, extending its loss for the week to 1.7%. Technology stocks did the most to weigh down the market, and the tech-heavy Nasdaq pulled back 0.9%. Apple fell 3.3% after a judge ordered the company to take down part of the competitive barricade that surrounds its app store, which is a major moneymaker for the company. The yield on the 10-year Treasury note rose to 1.33%.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

Stocks edged lower in choppy trading Friday, keeping major indexes on track to end this holiday-shortened week lower.

The S&P 500 was down 0.1% as of 2:21 p.m. Eastern. The benchmark index is down 1.1% for the week and on track for its fifth straight drop.

The Dow Jones Industrial Average, slipped 58 points, or 0.2%, to 34,820, and the Nasdaq composite shed an early gain, slipping 0.1%.

Health care, technology and communications stocks weighed on the market. Those losses offset gains by industrial stocks and a mix of retailers and other companies the rely on direct consumer spending.

Stocks have traded in a narrow range for several weeks as most investors are sitting on the sidelines waiting to get a fuller understanding of where the economy is headed and how the pandemic is impacting corporations.

“There isn’t any new good news coming, and that’s important because we’ve gotten a decent amount of good news that has flowed up until this point this year,” said Liz Young, head of investment strategy at personal finance company SoFi.

Investors got a negative piece of inflation data on Friday. Inflation at the wholesale level climbed 8.3% last month from August 2020, the biggest annual gain since the Labor Department started calculating the 12-month number in 2010.

Federal Reserve policymakers have said they believe inflation this year would be temporary and is a result of the economy recovering from the pandemic. However, persistently high inflation could force the Fed’s hand to start pulling back on its bond-buying program and low interest rate policy sooner than anticipated.

The bond market had a mild reaction to the inflation data, a possible sign that investors continue to agree with the Fed’s outlook. The yield on the 10-year Treasury note rose to 1.33% from 1.30%.

The pandemic remains in the forefront of investors’ minds, as hospitals fill up in the South and other parts of the country. President Joe Biden announced Thursday that companies with more than 100 employees would be required to have their employees vaccinated or do weekly testing, an announcement big companies have been willing to embrace.

“A lot of the pain was felt in August and that’s part of why September is going to be so choppy,” Young said. “I’m hopeful that some of the worst of that is behind us and we can move forward.”

The market is still trying to find reasons to go higher, she said, and the economy is also likely to keep grinding on because of the desire from consumers and companies to get back to a more normal way of operating.

Industries that have been hit hardest through the pandemic and are relying on a steady recovery have been struggling as COVID-19 cases rise with the highly contagious delta variant. Airlines slumped, with American Airlines shedding 4.8% and Delta Air Lines falling 2.8%.

Apple fell 2.7% after a federal judge ordered the iPhone maker to dismantle part of the competitive barricade guarding its closely run app store, which is one of its biggest moneymakers.

Restaurant and arcade operator Dave & Buster’s rose 2.7% after reporting solid financial results. Endo International surged 30.7% after settling opioid cases with the state of New York and two large counties in a $50 million deal.

Energy futures were mostly headed higher. The price of U.S. crude oil rose 2.3%, helping nudge energy stocks higher.

Wall Street capped a choppy day of trading Friday with another pullback for stocks and the S&P 500′s first weekly loss in three weeks.

The benchmark index fell 0.8%, its fifth straight decline, and ended 1.7% lower for the holiday-shortened week. That’s it’s biggest weekly drop since June. The other major U.S. stock indexes also posted weekly losses.

The selling was widespread, though technology, health care and communications stocks weighed most heavily on the S&P 500. Smaller company stocks also fell broadly. Treasury yields mostly rose. The price of U.S. crude oil rose 2.3%.

Stocks have traded in a narrow range for several weeks as most investors are sitting on the sidelines waiting to get a fuller understanding of where the economy is headed and how the pandemic is impacting corporations.

“There isn’t any new good news coming, and that’s important because we’ve gotten a decent amount of good news that has flowed up until this point this year,” said Liz Young, head of investment strategy at personal finance company SoFi.

The S&P 500 fell 34.70 points to 4,458.58. The index is now within 1.8% of the all-time high it set last week. The Dow Jones Industrial Average lost 271.66 points, or 0.8%, to 34,607.72. The tech-heavy Nasdaq composite shed an early gain, dropping 132.76 points, or 0.9%, to 15,115.49.

The Russell 2000 index of smaller companies gave up 21.58 points, or 1%, to 2,227.55.

Investors mulled a negative piece of inflation data Friday. Inflation at the wholesale level climbed 8.3% last month from August 2020, the biggest annual gain since the Labor Department started calculating the 12-month number in 2010.

Federal Reserve policymakers have said they believe inflation this year would be temporary and is a result of the economy recovering from the pandemic. However, persistently high inflation could force the Fed’s hand to start pulling back on its bond-buying program and low interest rate policy sooner than anticipated.

The bond market had a mild reaction to the inflation data, a possible sign that investors continue to agree with the Fed’s outlook. The yield on the 10-year Treasury note rose to 1.33% from 1.30%.

The pandemic remains in the forefront of investors’ minds, as hospitals fill up in the South and other parts of the country. President Joe Biden announced Thursday that companies with more than 100 employees would be required to have their employees vaccinated or do weekly testing, an announcement big companies have been willing to embrace.

“A lot of the pain was felt in August and that’s part of why September is going to be so choppy,” Young said. “I’m hopeful that some of the worst of that is behind us and we can move forward.”

The market is still trying to find reasons to go higher, she said, and the economy is also likely to keep grinding on because of the desire from consumers and companies to get back to a more normal way of operating.

Industries that have been hit hardest through the pandemic and are relying on a steady recovery have been struggling as COVID-19 cases rise with the highly contagious delta variant. Travel-related companies were among the decliners Friday. American Airlines slid 6.2% and Delta Air Lines lost 4.2%, while cruise line operator Carnival fell 2.3% and Norwegian Cruise Line dropped 1.4%.

Apple fell 3.3% after a federal judge ordered the iPhone maker to dismantle part of the competitive barricade guarding its closely run app store, which is one of its biggest moneymakers.

Restaurant and arcade operator Dave & Buster’s rose 1.2% after reporting solid financial results. Endo International surged 32.9% after settling opioid cases with the state of New York and two large counties in a $50 million deal.