US: Stocks retreat from records amid Covid-19 worries

[NEW YORK] Major US stock indices retreated from records Monday as investors weighed progress on US infrastructure legislation against concerns about the latest Covid-19 wave.

Markets greeted news that President Joe Biden's US$1.2 trillion infrastructure package cleared a key Senate procedural vote, setting the stage for the bill to pass the chamber on Tuesday.

Offsetting that positive news, however, was the latest surge in Covid-19, with the Delta variant leading to a spike in infections in states with low vaccination rates.

The latest Covid-19 trend weighed on travel-related stocks. Major US airlines dropped more than two per cent, along with hotel chains such as Marriott International.

The Dow Jones Industrial Average dropped 0.3 per cent to end the day at 35,101.85, while he broad-based S&P 500 dipped 0.1 per cent to 4,432.35, after both closed at records on Friday.

The tech-rich Nasdaq Composite Index advanced 0.2 per cent to finish at 4,860.18.

Among individual companies, Moderna shot up 17.1 per cent and Pfizer won 2 per cent as more governments and employers impose vaccine requirements.

The Pentagon plans to make Covid-19 vaccinations mandatory for all members of the US military by mid-September, according to a memo from Defense Secretary Lloyd Austin.

Meanwhile, Tyson Foods jumped 8.7 per cent as it projected higher than expected 2021 sales after reporting increased profits in the quarter ending July 3.

This week's calendar includes an inflation read from the consumer price index on Wednesday, as well as earnings from Disney on Thursday.

AFP