US INVENTORIES-Wall Street slumps as growth concerns grip investors

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* US Fed must cut pandemic stimulus – Bullard

* Coinbase Collapses After SEC Threatens Lawsuit

* PayPal falls after acquiring Japanese buy now, pay later firm

*Indices down: Dow 0.42%, S&P 0.48%, Nasdaq 1.04% (update prices, adds comment)

By Shashank Nayar

Sept. 8 (Reuters) – Wall Street indices fell Wednesday amid concerns that the spread of the Delta coronavirus strain could slow economic growth and uncertainty over the timeline for the Federal Reserve to withdraw its accommodative policy.

The S&P 500’s technology sector was among the biggest losing sub-indexes, as heavyweights Microsoft Corp fell 0.6% and Apple Inc fell 1%.

US equities have come under pressure in recent days as investors have become cautious after weak paycheck data from Friday in August, while pressures from rising costs, despite the slowdown in the economy, have cast doubt on the US economy’s timetable. Fed for winding down.

“There are concerns in the market about possible rising inflation, as supply chain constraints and pent-up consumer demand are expected to push prices for goods up and the market may believe that the Fed may not be as strong in the future. will be mild,” Jon said. Maier, Chief Investment Officer at Global X.

The president of the St. Louis Federal Reserve Bank, James Bullard, told the Financial Times that the Fed must press ahead with a plan to wind down its massive pandemic stimulus program, despite a slowdown in job growth.

The S&P 500 and Nasdaq are up 18.5% and 19.8% respectively this year thanks to the support of the central bank’s easygoing policies, but a jump in coronavirus infections and recent weak economic data have raised concerns about the pace of recovery.

“The ebb and flow of the pandemic will be here with us. We haven’t had a correction in a while. There are some big factors here, so we wouldn’t be surprised if we get a correction,” said Matt Stucky, portfolio manager at Northwestern Mutual Wealth Management in Milwaukee, Wisconsin.

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Eight of the 11 subsectors declined, with economy-sensitive sectors such as manufacturing, materials and energy as the biggest losers in early trade.

At 11:57 a.m. ET, the Dow Jones Industrial Average fell 147.63 points or 0.42% to 34,952.37, the S&P 500 fell 21.62 points or 0.48% to 4,498.41 and the Nasdaq Composite fell 159 .95 points or 1.04%, at 15,214.38.

Perrigo Company Plc rose 9.4% after the drugmaker said it plans to buy HRA Pharma from investment firms Astorg and Goldman Sachs Asset Management in a deal worth 1.8 billion euros ($2.13 billion).

Cryptocurrency exchange Coinbase Global Inc fell 3.3% after the US securities regulator threatened to sue the company if it goes ahead with plans to launch a crypto lending system.

US payment giant PayPal Holdings Inc fell 2% after it said it would acquire Japan’s buy now, later paying firm Paidy in a $2.7 billion deal largely in cash.

Investors are also waiting for quarterly results after the bell of meme-stock darling GameStop.

The number of declining issues surpassed the avant-garde by a 2.25-to-1 ratio on the NYSE and a 3.04-to-1 ratio on the Nasdaq.

The S&P index recorded 24 new highs in 52 weeks and one new low, while the Nasdaq recorded 42 new highs and 30 new lows. (Reporting by Shashank Nayar and Medha Singh in Bengaluru; editing by Anil D’Silva and Arun Koyyur)