Stocks lost steam and began to fall for the first time in six sessions on Tuesday ahead of quarterly earnings reports from Big Tech powerhouses like Apple
Here's how the market settled on Tuesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
CDC reverses mask recommendation in areas of high COVID transmission:
The Centers for Disease Control and Prevention (CDC) recommended Tuesday that fully vaccinated people wear masks in indoors again in areas of high COVID transmission rates, effectively reversing its mask guidance issued in May.
"In areas with substantial and high transmission, CDC recommends fully vaccinated people wear masks in public, indoor settings to help prevent the spread of the Delta variant, and protect others. This includes schools," CDC Director Dr. Rochelle Walensky told reporters on a call, quoted by CNBC. The federal agency also recommends that everyone in grade schools wear masks, "including teachers, staff, students and visitors, regardless of vaccination status."
IMF warns inflation pressures may become more persistent:
The International Monetary Fund (IMF) warned Tuesday that there is an increased risk that current inflation trends may be more than just transitionary, going against recent forecasts from the Federal Reserve Open Market Committee.
While the institution still maintains that price pressures are transitory, stating that "inflation is expected to return to its pre-pandemic ranges in most countries in 2022," in its latest World Economic Outlook update released Tuesday, the IMF warns that "uncertainty remains high."
"There is however a risk that transitory pressures could become more persistent and central banks may need to take preemptive action," the IMF added.
The IMF projects that the global economy will grow by 6.0% in 2021 and 4.9% in 2022.
Here's how the market started trading after opening bell:
S&P 500 Index: -0.27% or -11.74 points to 4,410.56
Dow Jones Industrial Average: -0.47% or -166.56 points to 34,977.75
Nasdaq Composite Index: -0.25% or -30.52 points to 14,803.60
Home sales rise at fastest pace on record:
U.S. home price changes increased by the fastest pace on record in May, as tight inventory levels and high demand continues to raise prices further.
The S&P CoreLogic Case-Shiller National Home Price index rose at a 16.61% year-over-year rate in May to accelerate from April's 14.84% rise, marking the fastest increase ever reported by the index dating back to 1988.
The institution's 10-city composite, tracking home price changes in 10 of the largest U.S. metropolitan areas, annual increase was 16.4% in May, up from 14.5% in April. Moreover, its 20-city composite index rose by a higher-than-expected 16.99% over last year.
"A month ago, I described April's performance as 'truly extraordinary,' and this month I find myself running out of superlatives," said Craig Lazzara, managing director and global head of index investment strategy at S&P DJI, in a press statement. "We have previously suggested that the strength in the U.S. housing market is being driven in part by reaction the the COVID pandemic, as potential buyers move from urban apartments to suburban homes. May's data continue to be consistent with this hypothesis."
