Stocks finish lower as investors turn cautious amid concern about the economic impact of the Delta variant.
Stocks finished lower Wednesday as investors adopted a cautious stance on risk amid concerns over the pace of Delta variant infections and their impact on the broader economic recovery.
The Dow Jones Industrial Average finished down 68 points, or 0.2%, to 35,031, the S&P 500 slipped 0.13%, and the Nasdaq, which closed at a fresh record high on Tuesday, lost 0.57%.
Markets are also calibrating potential changes to emergency support programs from the European Central Bank, which meets tomorrow in Frankfurt, as well as the Federal Reserve’s $120 billion in monthly bond purchases.
In the U.S., with COVID-19-related deaths rising past 1,500 for the first time since March and daily infections surging past 150,000 for the first time in more than a year, President Joe Biden has pledged to present a six-point plan to combat the highly-contagious Delta variant at a press briefing on Thursday that could include mask mandates, testing and new policies for schools.
Benchmark 10-year Treasury note yields slipped to 1.33%.
Meanwhile, Treasury Secretary Janet Yellen warned House Speaker Nancy Pelosi that the mere specter of a U.S. default can have drastic consequences for U.S. financial markets and urged Democratic leadership to raise or suspend the debt ceiling as soon as possible, CNBC reported.
PayPal (PYPL) – Get PayPal Holdings Inc Report slipped following its $2.7 billion deal to buy Japan-based ‘buy now, pay later’ platform Paidy.
Coty (COTY) – Get Coty Inc. Class A Report tumbled after the luxury brands company priced a secondary offering of its common shares, sold by private equity group KKR, at $8.53 each, an 8.1% discount to its Tuesday closing price of $9.28.