Mixed Close in NY Stock Market... Strong Retail Sales, Will It Lead to Tapering?

[Asia Economy New York=Correspondent Baek Jong-min] The major indices of the New York stock market closed mixed after fluctuating despite an increase in retail sales.

[Image source=Reuters Yonhap News]

On the 16th (local time), the Dow Jones Industrial Average fell 63.07 points (0.18%) to 34,751.32, the S&P 500 dropped 6.95 points (0.16%) to 4,473.75, and the Nasdaq rose 20.39 points (0.13%) to close at 15,181.92.

On that day, the major indices started higher as August retail sales, released before the market opened, showed a surprising increase contrary to market expectations of a decline compared to the previous month.

August retail sales increased by 0.7% from the previous month, far exceeding the Dow Jones compiled market forecast of a 0.8% decrease.

Investment bank Jefferies analyzed, "August retail sales recorded a broad-based increase overall despite weak automobile sales."

Although the strong retail sales eased concerns about an economic slowdown due to the spread of the Delta variant, worries that it could prompt the Federal Reserve's asset purchase tapering decision next week were reflected, causing the market to quickly turn downward.

On that day, the 10-year U.S. Treasury yield rose again to the 1.3% range. The rise in bond yields led the dollar index to strengthen by 0.3%.

Desjardins Group explained, "The August retail sales results suggest that the spread of the Delta variant is not significantly impacting the economy and could further reassure Fed officials."

Reflecting concerns over tapering implementation, mining and commodity stocks sharply declined. Freeport-McMoRan Copper & Gold fell by as much as 6%. Newmont Goldcorp Group and Martin Marietta Materials also showed notable declines.

Moderna rose 1.4% after releasing data supporting the need for booster shots. The FDA external advisory panel is scheduled to decide the recommendation on universal booster shot implementation the following day.