Stocks Skid on Economic Worries

U.S. stocks fell Thursday, while Treasury yields sank for a fourth day, as investors unwound bets on a spell of high growth and inflation.
The S&P 500 lost 0.8% in recent trading, a sharp reversal from Wednesday when the broad stock-market gauge closed at a new all-time high. The Dow Jones Industrial Average slid roughly 250 points, or 0.7%. Meanwhile, the technology-heavy Nasdaq Composite, which also notched a new high Wednesday, fell 0.8%. All three indexes tumbled to start the day before paring some of their losses.
Thursday’s selloff across the U.S. market was broad-based, and came after investors pulled back from equities around the globe. Nine of the S&P 500’s 11 sectors traded lower, with only the energy and real estate groups ticking up slightly. Financial services companies, technology firms and retailers were among the hardest hit, with Twitter , Gap and Morgan Stanley each losing 1.3% or more.
Stocks have powered to a series of record highs this year, but some investors have grown concerned that labor shortages and supply-chain bottlenecks may crimp the pace of economic recovery. The spread of the highly contagious Delta variant of the coronavirus globally is adding to worries.
Investors also are gearing up for a spell of potentially volatile summer trading, when trading desks tend to be lightly staffed.

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