Wall Street ends down, Apple sinks on app store ruling
- U.S. producer prices rise solidly in August
- Apple falls after ‘Fortnite’ case ruling
- Kroger falls as shipping woes hurt margins
Sept 10 (Reuters) – Wall Street ended lower on Friday as investors weighed signs of higher inflation, while Apple Inc (AAPL.O) tumbled following an unfavorable court ruling related to its app store.
U.S. producer prices rose solidly in August, leading to the biggest annual gain in nearly 11 years and indicating that high inflation was likely to persist as the pandemic pressures supply chains, data showed. read more
Sentiment also took a hit from Cleveland Federal Reserve Bank President Loretta Mester’s comments that she would still like the central bank to begin tapering asset purchases this year despite the weak August jobs report. read more
The S&P 500 has risen about 19% in 2021, buoyed by support from dovish central bank policies and re-opening optimism.
However, Wall Street has moved sideways in recent sessions as investor digest indications of increased inflation and concerns about the Delta variant’s impact on the economic recovery. Investors are also uncertain about when the Federal Reserve may begin reducing massive measures enacted last year to shield the economy from the pandemic.
“The market is taking a breather,” said Greg Bassuk, CEO of AXS Investments. “Investors are looking for some outsized news or information that is beyond the band of expectations, something much more outsized, positively or negatively, that will give investors better visibility into how things are going to look for the balance of the year.”
Apple tumbled after a judge struck down a core part of its App Store rules, benefiting app makers. read more
The Nasdaq Composite (.IXIC) dropped 0.85% to 15,117.97.
The three main U.S. indexes got some support early from news of a phone call between U.S. President Joe Biden and Chinese leader Xi Jinping that was taken as a positive sign, which could bring a thaw in ties between the world’s two most important trading partners.
U.S.-listed Didi Global (DIDI.N) dropped after Chinese government officials told leading delivery and ride-hailing companies to improve how they distributed incomes and ensure rest periods for workers. read more
Grocer Kroger Co (KR.N) slumped after it said global supply chain disruptions, freight costs, discounts and wastage would hit its profit margins.
Additional reporting by Shashank Nayar and Shreyashi Sanyal in Bengaluru; Editing by Aditya Soni and Aurora Ellis
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