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NEW YORK, April 22 — Wall Street stocks dipped early today as questions about lofty equity valuations and rising Covid-19 cases in many countries offset better economic data.
After a strong run over the last month, US equities have been under pressure this week as investors question whether an expected earnings bounce later this year has already been priced into stocks.
Adding to that is “mounting skepticism surrounding the credibility of global economic growth projections” due to rising coronavirus cases in Europe and Asia, CFRA Reasearch analyst Sam Stovall said in a note.
About 25 minutes into trading, the Dow Jones Industrial Average was down 0.3 per cent at 34,044.71.
The broad-based S&P 500 shed 0.2 per cent to 4,164.67, while the tech-rich Nasdaq Composite Index lost 0.2 per cent at 13,921.54.
New filings for US unemployment benefits declined again last week, hitting their lowest level since the Covid-19 pandemic began, the Labor Department reported.
The 547,000 new seasonally adjusted filings reported in the week ended April 17 were better than analysts expected and 39,000 fewer than the previous week’s upwardly revised figure, and came as vaccination campaigns offer hope for a return to normalcy in the world’s largest economy.
Companies with big moves after earnings reports included AT&T, which surged 5.2 per cent and chemical company Dow, which slumped 4.1 per cent. — AFP