Dow, the S&P 500 falls as financials lag; The Nasdaq to the record

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  • Cyclical sectors lead to declines
  • Nasdaq posts closing record
  • China’s tech crackdown hits Didi, others
  • Indices: Dow down 0.6%, S&P 500 down 0.2%, Nasdaq up 0.2%

NEW YORK, July 6 (Reuters) – The Dow Jones and the S&P 500 fell on Tuesday as financials and other groups were closely tied to economic growth leading to declines, while the Nasdaq edged up to another closing record.

The S&P 500 Banks Index (.SPXBK) fell 2.5% as US Treasuries rallied, with the 10-year yield hitting its lowest since February 24. Data showed that activity in the US service sector grew at a moderate pace in June, possibly held back by commodity shortages. Read more

The Dow Jones led the day’s declines. Financials (.SPSY) fell 1.6%, the largest weight on the S&P 500 followed by energy stocks (.SPNY).

Adding to investor caution, a regulatory crackdown from Beijing resulted in a massive sell-off of the shares of several Chinese companies listed in the United States, including Didi Global Inc (DIDI.N). Read more

Alan Lancz, chairman of Alan B. Lancz & Associates Inc., an investment advisory firm based in Toledo, Ohio, said Treasury yields were falling, “Investors may fear the economy is not good as the stock market shows “.

Additionally, investors could take profits after a strong quarter end and a string of recent record highs. “It was such a good end of the quarter,” he said. Now “cyclical stocks are really hit”.

The S&P 500 Growth Index (.IGX) ended up 0.5% after hitting a record Tuesday, while the S&P 500 Stock Index (.IVX) fell 1%.

The Dow Jones Industrial Average (.DJI) lost 208.98 points, or 0.6%, to 34,577.37, the S&P 500 (.SPX) lost 8.8 points, or 0.20%, to 4 343.54 and the Nasdaq Composite (.IXIC) added 24.32 points, or 0.17%, to 14,663.64.

A security camera is seen next to the signage outside the New York Stock Exchange (NYSE) in New York, New York, United States on June 28, 2021. REUTERS / Andrew Kelly

Last week, all three indices posted their fifth consecutive quarterly gain. They hit new highs on Friday.

On Tuesday, the Cboe Volatility Index (.VIX), an options market indicator of short-term volatility expectations, rose 1.37 points to close at 16.44, its highest close in two weeks, highlighting the restless nerves of investors.

Didi Global shares fell 19.6% after Chinese regulators ordered over the weekend that the company’s app be removed days after it was listed on the New York Stock Exchange for $ 4.4 billion. of dollars. Read more

Other Chinese e-commerce companies listed in the United States also fell, including Alibaba Group, down 2.8%, and Baidu, down 5%.

Falling issues outnumbered advancing ones on the NYSE by a ratio of 1.86 to 1; on the Nasdaq, a ratio of 2.18 to 1 favored the declines.

The S&P 500 posted 49 new 52-week highs and no new lows; the Nasdaq Composite recorded 69 new highs and 75 new lows.

Volume on the U.S. exchanges was 10.12 billion shares, compared to an average of 10.8 billion for the full session over the past 20 trading days.

Additional reports by Devik Jain and Shreyashi Sanyal in Bangalore; Editing by Arun Koyyur, Maju Samuel and David Gregorio

Our Standards: Thomson Reuters Trust Principles.


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