U.S. consumer confidence this month unexpectedly fell to its lowest since February, intensifying concerns about the economy’s near-term prospects.
The Dow Jones Industrial Average was down 516.54 points, or 1.48%, at 34,352.83. The S&P 500 was down 88.15 points, or 1.98%, at 4,354.96, and the Nasdaq Composite was down 408.64 points, or 2.73%, at 14,561.33, both tracking their worst day since early May.
U.S. consumer confidence this month unexpectedly fell to its lowest since February… The reading, coupled with a rising trade deficit and an expected decline in vehicle sales, brewed fresh concerns about the state of consumption in the country, which is a key driver of economic growth.
“It seems like all these headwinds are hitting at the same time – potential higher taxes, higher inflation, uncertainty about the Delta variant, earnings and higher interest rates … are weighing heavily on the indexes,” said Ken Mahoney, chief executive officer of Mahoney asset management.
Progress on U.S government funding negotiations was also in focus with Democrats scrambling to prevent a government shutdown and a potentially economically crippling U.S. credit default on Tuesday while also trying to agree on a mammoth tax and spending package.
Shares of Apple, Microsoft Corp, Amazon.com Inc and Google-parent Alphabet Inc dropped between 2.9% and 4%.
Federal Reserve Chair Jerome Powell said the U.S. economy is still far from achieving maximum employment in a hearing before the U.S. Senate Banking Committee…
MacDailyNews Take: Obviously, a healthy U.S. economy is essential to Apple, as America is Apple’s largest market, by far.
Again, it’s best to get a handle on inflation, if you know how, while you still can.
Inflation is repudiation. — Calvin Coolidge
When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill. And when government does it for 40 years, the bill comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan