Wall Street closes lower as tech shares sink

Monday, 17. May 2021 22:01

Major United States stock markets closed lower on Monday as technology shares took a dip on high inflation concerns. Federal Reserve officials assured the inflation will be transitory and predicted the economy to grow up to 7% this year, "fastest pace growth in 35 years". Investors saw the narrative as a sign the Fed will soon tighten monetary policy amid economic recovery, which would subsequently prevent the stock markets from benefiting from low-interest rates.

Some entertainment streaming services saw losses intraday after AT&T announced a $43 billion deal, under which WarmerMedia merged with Discovery to form a joint venture and stand stronger against market competition, such as Disney and Netflix.

The Dow sank by 0.16% as Walt Disney declined by 2.08%, while the S&P 500 fell by 0.25% and the Nasdaq 100 dropped by 0.60%, both led by Comcast losing 5.50%. The euro gained 0.10% against the dollar trading for $1.21578 at 3:54 pm ET.

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