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  • Wall Street ended lower on Monday as tech stocks slid thanks to growing concerns among investors about higher inflation and the potential for tighter monetary policy
  • Of the S&P sectors that fell over the course of trading, technology and communication services were among the biggest decliners
  • It’s a shift from the strength seen at the end of last week, which peaked when the S&P 500 recorded its biggest one-day jump in more than a month on Friday
  • According to data from Refinitiv IBES, overall earnings for S&P 500 companies are estimated to have climbed roughly 50.6 per cent compared to this time last year
  • All up, the Dow Jones Industrial Average fell 0.16 per cent, while the S&P 500 dropped 0.25 per cent and the NASDAQ lost 0.38 per cent

Wall Street ended lower on Monday as tech stocks slid thanks to growing concerns among investors about higher inflation and the potential for tighter monetary policy.

Of the S&P sectors that fell over the course of trading, technology and communication services were among the biggest decliners.

“What is causing the decline, no surprise to anybody, is the worry about inflation and interest rates,” said Sam Stovall, chief investment strategist at New York-based CFRA Research.

“As a result that’s causing the growth group, in particular technology and consumer discretionary stocks, to experience weakness, while some of the more value-oriented groups are holding up a bit better.”

It’s a shift from the strength seen at the end of last week, which peaked when the S&P 500 recorded its biggest one-day jump in more than a month on Friday. Wall Street’s top indexes enjoyed a boost as investors picked up beaten-down stocks after a consolidation earlier in the week that also came from concerns about inflation sooner-than-expected tightening by the U.S. Federal Reserve.

It’s expected that the last of U.S. earnings reports — due this week — will be scrutinised for hints as to whether rising prices had any impact on consumer demand, and whether retailers can maintain their strong momentum.

According to data from Refinitiv IBES, overall earnings for S&P 500 companies are estimated to have climbed roughly 50.6 per cent compared to this time last year — their strongest pace in 11 years.

All up, the Dow Jones Industrial Average fell 0.16 per cent, while the S&P 500 dropped 0.25 per cent and the NASDAQ lost 0.38 per cent.

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