The NYSE index was down 1.68 to 463.41. The Nasdaq index fell 10.68 to 1,432.43, ending three consecutive sessions of record closes. Bucking the trend, the American Stock Exchange index edged up 0.11 to 625.97. With the market having been up 350 points last week, I don't think it's any big surprise. The lower overall market came despite reports suggesting inflation remains under control.
Inflation erodes the value of stocks and other investments.
In its latest Beige Book report, the Federal Reserve said today the domestic economy continued to expand in May and early June but showed signs of weaker consumer spending. A government report released today showed the productivity of American workers rose at the fastest rate since 1993 during the first three months of the year. Economists cite productivity improvements as an important factor in keeping a lid on inflation because businesses can raise wages without raising prices. Securities analysts said the market is already convinced that the Federal Reserve will not raise interest rates when it meets July 1-2. The central bank raised rates in March as a pre-emptive strike against inflation.