Wall Street closes in decline and Apple sinks after court decision – Money Times

Wall Street
It was the first time since February that the S&P 500 went down for five consecutive trading sessions (Image: REUTERS/Carlo Allegri)

The main indexes of Wall Street closed lower on Friday, as investors evaluated signs of inflation higher, while the shares of the Apple Inc (AAPL) had a sharp drop after an unfavorable court decision related to its app store.

Producer prices of USA rose solidly in August, pushing prices to a 12-month high in nearly 11 years and indicating that high inflation is likely to persist due to pressures (related to the pandemic) in supply chains, data showed.

The sentiment was also shaken by comments from the president of the Federal Reserve from Cleveland, Loretta Mester, who would like the central bank to start cutting back on asset purchases this year despite the weak employment report in August.

The S&P 500 accumulates an increase of about 19% in 2021, boosted by the support of “dovish” monetary policies (inclined to monetary stimuli) of the central bank the US and for optimism with the economic reopening.

However, Wall Street has been hovering around the same levels in recent sessions as investors digest indications of rising inflation and concerns about the Delta variant’s impact on the economic recovery.

Market players are also uncertain about when the Federal Reserve can begin to scale back the broad stimulus measures adopted last year to protect the economy from the pandemic.

“The market is taking a deep breath,” said Greg Bassuk, CEO of AXS Investments. “Investors are looking for news or information outside the curve that goes beyond expectations, something that has a much greater impact, positively or negatively, that gives them better visibility of how things will be on the balance sheet for the year.”

Apple shares fell 3.3% after a US federal judge hit a key part of the App Store on Friday, forcing Apple to allow developers to send their users to other payment systems in a win for Epic Games (creator of “Fortnite”) and other application manufacturers.

The Dow Jones index fell 0.78%, to 34,608 points, while the S&P 500 lost 0.772264%, to 4,459 points. The Nasdaq technology index retreated 0.87% to 15,115 points.

It was the first time since February that the S&P 500 fell five days in a row.

In the week, the S&P 500 (SPX) declined by 1.7%, the Dow Jones (DJI) lost 2.15%, and the Nasdaq (US100) yielded 1.61%, also according to preliminary data.

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