US stocks fall on recovery concerns: Fears that the US economic rebound from covid has peaked led shares to fall yesterday though tech stocks saw gains, according to Bloomberg. The S&P 500 fell 0.3% and the Dow lost 0.8% during trading yesterday as the greenback rose and bond yields climbed. The tech-heavy Nasdaq was the outlier, seeing a slightly 0.1% rise as investors bought into heavyweight tech companies.

The source of concern: Delta. The Wall Street Journal is already forecasting a slowdown in growth this month as the delta covid variant continues to spread around the country. Mask mandates and travel restrictions are back, hiring is slowing, consumer sentiment continues to fall, and Goldman Sachs has again reduced its 2021 growth forecast.

“The delta variant concerns are weighing down on overall third-quarter growth,” one fund manager told Bloomberg. “The next couple of weeks are going to be pretty rocky. We’re seeing investors become more picky with their stocks not only because of the delta concern but also because of fading fiscal stimulus, legislative policies and an overall slowing recovery in some sectors”

Global stocks recorded an eighth consecutive record high on Tuesday as expectations that the Federal Reserve will delay plans to unwind its stimulus program grew, Reuters reports. Weaker-than-expected US jobs data this week has heightened speculation that policymakers will rethink plans to begin reducing asset purchases later this year, helping MSCI’s global index to inch up 0.1% during trading.

In other global business news:

• Did Ford just land the coup de grace to Apple’s auto ambitions? The man appointed by Apple to helm its car project has defected to Ford, in a move the press is pitching as a heavy blow to the tech company’s auto ambitions. Doug Field joined Apple’s Titan project three years ago, which has goals of producing electric and autonomous vehicles in the coming years, but has now been hired by Ford where he will head up its advanced technology and embedded systems operations. (FT | Reuters | The Verge)
• German regulators join the Allianz pile-on: German authorities are the latest to launch an investigation into the country’s largest financial company, Allianz, which is facing a spate of lawsuits in the US after several of its funds tanked during the covid market sell-off last year. (Reuters)

THE CLOSING BELL-

The EGX30 rose 0.2% at yesterday’s close on turnover of EGP 1.4 bn (7.4% below the 90-day average). Regional investors were net buyers. The index is up 2.3% YTD.

In the green: Speed Medical (+9.8%), Egyptian for Tourism Resorts (+5.7%) and MM Group (+4.6%).

In the red: Credit Agricole (-2.2%), Ezz Steel (-1.5%) and Elsewedy Electric (-1.1%).

Asian markets are mixed in early trading this morning, with Chinese shares mostly in the green but exchanges in the rest of the region nursing losses. European shares look set to open in the red while shares on the other side of the Atlantic look to see early gains, according to US stock futures.