Wall Street loses initial gains from losses in high-growth stocks from Reuters

From Shreyashi Sanyal and Amruta Handekar

(Reuters) – The main indexes of Wall Street fell after opening higher on Monday, after last week’s rally to alleviate fears of inflation lost steam, with high-rise stocks leading to a decline.

“We had a nice rally last week, so I think we’re seeing some profit this morning,” said Dennis Dick, his own trader at Bright Trading LLC in Las Vegas.

“The stocks that rose the most last week are the ones that have been hit hardest here today.

The technology index, which rose 7.5% last week, fell 0.7% to drop among the three major indices.

Investors relied on the retreat of oil prices from the three-month highs reached in June to ease inflationary pressures and possibly force the Federal Reserve to soften its aggressive policy tightening.

However, data from Monday showed that new orders for US-made capital goods and supplies rose sharply in May, indicating a steady increase in business equipment costs in the second quarter.

Oil prices also returned to positive territory, raising the S&P 500 energy index by 2.2%, controlling expectations of falling inflation amid lower energy prices. [O/R]

The US Federal Reserve quickly raised interest rates to curb 40 years of inflation, fueling fears that its actions could lead the world’s largest economy to recession.

After the benchmark recorded a 20% drop from its peak in January earlier this month to confirm a bear market, investors are trying to assess when the market may bottom out.

At 10:11 a.m., the ET index fell 76.62 points, or 0.24%, to 31,424.06, the S&P 500 fell 13.94 points, or 0.36%, to 3,897.80, and the Nasdaq Composite decreased by 78.44 points, or 20.19%.

Shares of Robinhood (NASDAQ 🙂 Markets rose 0.6% after media reports said that Goldman Sachs (NYSE 🙂 has improved the shares of the retail broker to “neutral” from “sell”.

However, Goldman Sachs downgraded Coinbase (NASDAQ 🙂 Global Inc to “sell” from “buy”, according to media reports, sending shares on the cryptocurrency exchange lower by 9.4%.

Emission reductions outperform those on the NYSE by 1.03 to 1 and the Nasdaq by 1.31 to 1. The S&P index recorded a new 52-week high and 29 new lows, while the Nasdaq recorded 16 new highs and 41 new lows.