US: Stocks fall again amid anxiety over upcoming price data

WALL Street stocks endured another downcast trading day on Tuesday, ending a choppy session decisively lower as markets gird for a potentially grim US inflation report.

Analysts expect headline consumer prices rose 1.1 per cent in June, even faster than the level in May.

However, a slower increase is expected when food and energy is excluded.

Markets fear that another report showing hot inflation will lead the Federal Reserve to double down on large interest rate hikes after the central bank announced in June it was boosting rates by three-quarters of a point, the biggest increase in nearly 30 years.

“This is certainly a week where markets have plenty to be worried about,” said Art Hogan, chief market strategist at B Riley Wealth Management, who noted investors are also worried about corporate earnings reports.

“Investors have taken a cautious stance the first two days of the week.”

The Dow Jones Industrial Average dropped 0.6 per cent to end at 30,981.33. The broad-based S&P 500 fell 0.9 per cent to 3,818.80, while the tech-rich Nasdaq Composite Index tumbled 1.0 per cent to 11,264.73.

Among individual companies, Boeing shot up 7.4 per cent after it reported its highest monthly commercial plane deliveries since March 2019.

PepsiCo declined 0.6 per cent after reporting a drop in second-quarter profit to US$1.4 billion, despite a 5.2 per cent rise in revenues in results that topped estimates as it contended with rising cost pressures.

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