The Dow Jones Industrial Average fell on Tuesday amid lingering concerns about the delta variant’s impact on the economic reopening.
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The Dow dropped 269.09 points to 35,100.00, dragged down by a 1.8% loss in Boeing’s stock.
The S&P 500 fell 0.3% to 4,520.03.
The Nasdaq Composite rose less than 0.1% to 15,374.33, notching a record close.
The NYSE was closed on Monday for Labor Day.
Goldman Sachs downgraded its economic outlook over the weekend, citing the delta variant and fading fiscal stimulus. Goldman now sees 5.7% annual growth in 2021, below the 6.2% consensus. The firm cut its fourth-quarter GDP outlook to 5.5%, down from 6.5%.
“The hurdle for strong consumption growth going forward appears much higher: the delta variant is already weighing on Q3 growth, and fading fiscal stimulus and a slower service sector recovery will both be headwinds in the medium term,” stated the Goldman note.
Morgan Stanley downgraded U.S. equities to underweight on Tuesday.
“We see a bumpy September-October as the final stages of a mid-cycle transition play out,” wrote the strategists led by Andrew Sheets. “We continue to think this is a ‘normal’ cycle, just hotter and faster, and our cycle model remains in ‘expansion’. But the next two months carry an outsized risk to growth, policy and the legislative agenda.”
Reference: CNBC
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