US stocks fell on Friday amid a decline in Amazon stocks, but the S&P 500 posted its sixth consecutive positive month.
The broad equity benchmark fell 0.5% to 4,395.26, dragged down by the consumer discretionary and energy sectors. The tech-heavy Nasdaq Composite lost 0.7% to 14,672.68. The Dow Jones Industrial Average fell 149.06 points, or 0.4%, to 34,935.47 points.
Amazon fell nearly 7.6% after reporting its first quarterly loss of revenue in three years and giving weaker forecasts. Pinterest fell even further, 18.2%, after losing monthly users in the three months ended June 30.
The major averages finished a solid month, although volatility has increased amid concerns about economic recovery amid the spreading delta variant. The Nasdaq and Dow gained around 1.2% and 1.3% respectively in July, while the broad S&P 500 gained nearly 2.3% over the same period. Utilities, healthcare, real estate and technology stocks led the S&P 500 higher for the month, while energy and financials lagged.
“There has been a fair amount of volatility and price fluctuations in the market over the past few weeks,” said Brian Belski, chief investment strategist at BMO, in a press release. “Heightened concerns about the delta variant and its potential impact on reopening momentum appeared to be a key factor in the price action, while hot topics related to economic growth, earnings and political support also remained an overhang on risk sentiment.”
Investors have digested a key inflation indicator that showed better-than-feared price pressure on Friday. The core price index of private consumption expenditure rose by 3.5% in June compared to the previous year. It marked a sharp acceleration in inflation, but was slightly below the Dow Jones expectation of a 3.6% increase.
Weaker-than-expected values in the US economy further reduced concerns about a withdrawal from the Federal Reserve’s security purchases.
US gross domestic product rose 6.5% on an annualized basis in the second quarter, well below the Dow Jones’ 8.4% estimate. Meanwhile, the latest weekly jobless claims have also been higher than expected.
Fed chairman Jerome Powell noted on Wednesday that while the economy has come a long way since the Covid-19 recession, it still has a way to go before the central bank considers adjusting its monetary policy.
Procter & Gamble stocks rose nearly 2% after the consumer giant beat analysts’ estimates for quarterly earnings and sales. However, the company warned that rising raw material costs could hurt earnings in the coming year.
The stocks of online brokerage Robinhood rebounded just under 1% in volatile trading on Friday after ending their first trading session 8% lower.
