Shares of industrial and transportation companies fell amid fears that rising interest rates and major Omicron outbreaks would slow economic growth.
The Empire State survey of business conditions fell -0.7 point in January from 31.9 in the prior month, the first negative reading for the New York factory activity gauge since mid-2020, reflecting fresh strains from the Omicron and ongoing supply-chain bottlenecks. One money manager said compromises on the budget reconciliation bill would mean substantially less fiscal spending than originally proposed.
"I think the budget bill has been pulled back quite a bit from where it was to where it will be if it goes through," said Brent Schutte, chief investment strategist at money manager Northwestern Mutual Wealth Management. "I think people are more concerned about fiscal policy continuing to amp up inflation."
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-18-22 1642ET
