The US stocks were mostly lower on Tuesday, 04 May 2021, with the Nasdaq Composite and the S&P 500 indexes settling down, while the Dow Jones Industrial Average managed to eke out marginal gains, on profit booking after comments from Treasury Secretary Janet Yellen, who suggested interest rates may have to rise modestly to prevent the economy from overheating amid the recent spike in government spending.
At the close of trade, the Dow Jones Industrial Average index inclined 19.80 points, or 0.06%, to 34,133. The S&P 500 index was down 28 points, or 0.67%, at 4,165. The tech-heavy Nasdaq Composite Index fell 261.61 points, or 1.88%, to 13,634.
All the 11 major S&P 500 sectors were down, with technology, communication services and consumer discretionary falling more than 2% each. The defensive consumer staples, utilities and real estate sectors fell the least.
Shares of highly valued technology companies including Microsoft Corp, Alphabet Inc, Apple Inc, Amazon.com Inc and Facebook Inc fell between 2.3% and 4.2% amid concerns about rising inflation, fears the Federal Reserve may have to taper monetary stimulus earlier than telegraphed, and the potential for tax increases in the months ahead.
Pfizer shares rose slightly following quarterly results that beat expectations and raising its 2021 guidance. CVS Health shares jumped 4.4% after the pharmacy chain and insurance company also raised its guidance.
ECONOMIC NEWS: US Factory Orders Show Notable Rebound In March- US factory orders jumped by 1.1% in March after falling by a revised 0.5% in February, according to a report released by the Commerce Department on Tuesday.
The rebound by factory orders came as orders for durable goods increased by 0.8% in March following a 0.9% slump in February. Orders for non-durable goods also shot up by 1.5% in March after edging down by 0.1% in the previous month. The report also showed shipments of manufactured goods spiked by 2.1% in March after tumbling by 1.9% in February. Inventories of manufactured goods also advanced by 0.7% in March following a 0.8% increase in the previous month. With shipments jumping more than inventories, the inventories-to-shipments ratio fell to 1.38 in March from 1.40 in February.
US Trade Deficit Hits New Record High In March-US trade deficit widened to $74.4 billion in March from a revised $70.5 billion in February, a report released by the Commerce Department on Tuesday showed. The wider trade deficit was partly due to a jump in the value of imports, which surged up by 6.3% to $274.5 billion in March after falling by 0.7% to $258.1 billion in February.
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Originally Appeared On: https://www.business-standard.com/article/news-cm/us-stocks-fall-on-profit-taking-121050500219_1.html