The Dow and S&P 500 fell on Tuesday, with financials and other groups closely tied to economic growth leading declines, while the Nasdaq edged higher to another closing record.
The S&P 500 banks index fell 2.5% as U.S. Treasuries rallied, with the 10-year yield hitting its lowest since Feb. 24. Data showed U.S. services industry activity grew at a moderate pace in June, likely restrained by labor and raw material shortages.
The Dow led the day’s declines. Financials sank 1.6%, the biggest weight on the S&P 500 followed by energy shares.
Adding to investor caution, a regulatory crackdown by Beijing drove a selloff in shares of several U.S.-listed Chinese firms, including Didi Global Inc.
Also, investors may be taking profits after a strong end of the quarter and a string of recent records. “It was such a good quarter-end,” he said. Now, “cyclical are really getting hit.”
The S&P 500 growth index ended up 0.5% after hitting a record high on Tuesday, while the S&P 500 value index fell 1%.
The Dow Jones Industrial Average fell 208.98 points, or 0.6%, to 34,577.37, the S&P 500 lost 8.8 points, or 0.20%, to 4,343.54 and the Nasdaq Composite added 24.32 points, or 0.17%, to 14,663.64.
Last week, all three indexes posted their fifth consecutive quarterly gains. They scaled new highs on Friday.
On Tuesday, the Cboe Volatility Index, an options market gauge of expectations for near-term volatility, rose 1.37 points to close at 16.44, its highest close in two weeks, highlighting investors’ jangled nerves.
Didi Global shares dropped 19.6% after Chinese regulators ordered over the weekend the company’s app be taken down days after its $4.4 billion listing on the New York Stock Exchange.
Other U.S.-listed Chinese e-commerce firms also fell, including Alibaba (NYSE:BABA) Group, down 2.8%, and Baidu (NASDAQ:BIDU), down 5%. Declining issues outnumbered advancing ones on the NYSE by a 1.86-to-1 ratio; on Nasdaq, a 2.18-to-1 ratio favored decliners.
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 U.S. exchanges was 10.12 billion shares, compared with the 10.8 billion average for the full session over the last 20 trading days.
- Market Update Today: US Earnings and BitcoinS&P 500 Slips as Bulls Keep Powder Dry Ahead of Earnings, Inflation Dow Jones P – 34,496.06 A – 34378.34 -11.72 (-0.34%) S&P 500 4361.86 A – 4350.64 – 10.55 (-0.24%) NASDAQ P – 14486.2 A – 14465..90 – 20.30 (-0.14 Apple, meanwhile, said it plans to launch an event on Oct. 18, during which […]
- Market Update Today: Forex Pairs, Gold and OilDollar hits one-year high as U.S. yields rise, inflation data on tap EUR/USD – Euro US Dollarp 1.1527a 1.1535 +0.0008 +0.07%GBP/USD – British Pound US Dollarp 1.3585a 1.3584 -0.0001 -0.01%USD/JPY – US Dollar Japanese Yenp 113.6a 113.56 -0.04 -0.04% The dollar hit a one-year high on Tuesday on expectations the U.S. Federal Reserve will announce […]
- Market Week Ahead: CPI Release, Crude Oil, and moreLooking ahead into the coming week, the series of economic sentiment and CPI releases, along with employment change and OPEC-JMMC meetings, could generate plenty of headlines to keep the markets on the move. The chatter surrounding the US stimulus package and geopolitical tensions will also be closely followed, as they could play a key role […]
- Market Update Today: US Dollar, Bitcoin, Oil Price, and moreDollar edges higher with Friday’s payrolls data in focus EUR/USD – Euro US DollarP: 1.1596A : 1.1600 +0.0004 +0.03% GBP/USD – British Pound US DollarP: 1.3629A: 1.3628 -0.0001 -0.01% USD/JPY – US Dollar Japanese YenP: 111.45A: 111.50 +0.05 +0.04% Traders remained circumspect ahead of key payrolls report at the end of the week that could […]
- S&P 500 Jumps as Investors Swoop In on Tech After RoutThe S&P 500 rebounded Tuesday as investors took advantage of Monday’s selloff to load up on tech stocks. The S&P 500 gained 1%, the Dow Jones Industrial Average added 0.9% or 311 points, the Nasdaq was up 1.3%. Facebook climbed 2%, paring some of its 5% loss from Monday, after resuming service following a six-hour […]