Stocks were mostly lower on Monday as Wall Street measured inflation risks and the impact of a global tax deal on the largest tech companies in the US
The Dow Jones Industrial Average fell 135 points, or 0.39%, to 34,621, the S&P 500 fell 0.08%, and the Nasdaq rose 0.50% as investors secured the impact of one of the G-7 over the weekend global corporate tax treaty of 15% would have weighed on the tech giants.
Jim Cramer: What’s As Good As Riding A Stock? Riding on the throne
The G-7 deal, while it is certainly historic, must also be approved by recalcitrant G-20 leaders before it impacts tech giants like Apple (AAPL) – Get the report, Alphabet (GoogL) – Get the report Google, Facebook (FB) – Get the report and Amazon (AMZN) – Get the report. This process can take several years.
Stocks closed higher on Friday and tech stocks rose after the US created fewer-than-expected jobs in May, leading investors to believe that the Federal Reserve is making its $ 120 billion monthly asset purchases anytime soon will not go back. The S&P 500 closed at 4,229, just below a record high.
The Dow was up 0.7% over the week, the S&P 500 was up 0.6% and the Nasdaq was up 0.5%.
Wall Street awaits Thursday’s consumer price report for further signs of inflation risk this week. The Federal Reserve has argued that spikes in inflation will be temporary as the economy recovers from the coronavirus pandemic.
Treasury Secretary Janet Yellen said President Joe Biden should push his $ 4 trillion spending plans forward, even if they cause inflation to spike into next year. She also told Bloomberg in an interview that slightly higher interest rates would be a plus.
“If we ended up with a slightly higher interest rate
Environment it would actually be a plus for society
View and the Fed’s view, ”Yellen told Bloomberg.
The yield on the ten-year benchmark government bond rose slightly to 1.57% on Monday.
“So as we move around record highs, remember that it is normal for the market to take a little breather early in the week,” said Chris Larkin, managing director of trading and investment products at E * Trade. “And while inflation fears may fall by the wayside for now, the CPI data released on Thursday could put them back in the spotlight.”
Jobs data distortion, fire warning, put / call intrigue, fat chance of global tax
Biogenic (BIIB) – Get the report rose Monday after the Food and Drug Administration approved the company’s Alzheimer’s drug aducanumab.
The approval makes aducanumab the first new treatment for Alzheimer’s disease in nearly two decades.
Tesla (TSLA) – Get the report rose after falling earlier in the session on concerns about the pace of auto sales in China and a move by founder and CEO Elon Musk to pull the plug on the company’s high-end version of the company’s Model S plaid sedan.
Bitcoin gave way on Monday, falling about 1% to $ 35,503. The world’s largest cryptocurrency hit a record high of more than $ 64,000 in mid-April.
El Salvador’s President Nayib Bukele said he was putting together a bill to make Bitcoin legal tender alongside the US dollar in the Central American nation.