Stocks slip as Fed report signals ‘downshift’ in economy

Stocks are closing lower Wednesday on Wall Street following a Federal Reserve report that shows U.S. economic activity slowed this summer amid rising worries over resurgent coronavirus cases and mounting supply chain problems and labor shortages.

The S&P 500 index fell 0.1%, the Dow Jones Industrial Average lost 0.2% and the Nasdaq composite gave back 0.6%. Technology stocks had some of the biggest losses. Less risky investments, including consumer staples and utilities, made broad gains. The yield on the 10-year Treasury note fell to 1.34%. Oil prices rose 1.4%.

The Fed’s latest survey of the nation’s business conditions, dubbed the “Beige Book,” found that U.S. economic activity “downshifted” in July and August. In its report, released at 2 p.m. ET, the Fed said the slowdown was largely attributable to a pullback in dining out, travel and tourism in most parts of the country, reflecting concerns about the spread of the highly contagious delta variant.