US stock markets fell in unison overnight, the Dow Jones down 0.8%, the S&P 500 down 0.7% and the Nasdaq 0.9%.
The selling pressure came after retail sales were reported to have fallen 1.1% in July, far greater than the 0.3% reduction predicted.
It’s another sign the end of stimulus and heightened underemployment may be impacted on the economy’s trajectory. Not surprisingly the key input into inflation in recent months, auto sales, fell 3.9% in July as conditions continue to normalise.
Fund managers are reportedly taking more defensive positions, increasing healthcare, insurance and utilities holdings following reporting season.
Walmart (NYSE: WMT) was the only real report of note, with same-store sales continuing their mature growth of 3% behind a 6% increase in online sales that are now 100% higher over the last two years.
US stock market movers
Here’s how other popular US shares performed overnight.
- Moderna (NASDAQ: MRNA) up 7.5%
- Sea Ltd (NYSE: SE) up 6.1%
- Pfizer (NYSE: PFE) up 3.1%
- Facebook (NASDAQ: FB) down 2.2%
- General Motors (NSYE: GM) down 4.7%
- Under Armour (NYSE: UA) down 5.9%
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is set to follow US markets lower at the open on Wednesday. Get ready for a busy day as a large number of companies prepare to release their reports, as per Rask Media’s ASX reporting season calendar.
