Stocks make modest gains after days of records

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US and European stock markets made modest gains after days of records as concerns about the pandemic sparked a surprise collapse in US consumer confidence.

On Wall Street, the Dow and S&P 500 eked out a fourth consecutive record close and modest gains for the week amid thin summer trading.

US shares drifted higher at the open, but retreated after the University of Michigan reported its consumer sentiment index plunged to its lowest level in a decade as the Delta variant of Covid-19 continues to spread. The index fell 13.5 percent -- one of the largest declines ever recorded -- to 70.2 due to"dashed hopes that the pandemic would soon end," and the correct assessment that the economy will suffer, he added.

The worry is that tapering, along with an interest rate increase to contain inflation, could hamper the recovery.

 

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