NEW YORK, July 7 — The Dow and S&P 500 fell yesterday, 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 per cent as US Treasuries rallied, with the 10-year yield hitting its lowest since February 24.
Data showed US services industry activity grew at a moderate pace in June, likely restrained by labour and raw material shortages.
The Dow led the day’s declines. Financials sank 1.6 per cent, 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 US-listed Chinese firms, including Didi Global Inc
Alan Lancz, president of Alan B. Lancz & Associates Inc, an investment advisory firm based in Toledo, Ohio, said with Treasury yields down, “investors may be worried the economy might not be a good as the stock market was showing.”
Also, investors may be taking profits after a strong end of the quarter and string of recent records. “It was such a good quarter end,” he said. Now, “cyclicals are really getting hit.”
The S&P 500 growth index ended up 0.5 per cent after hitting a record high yesterday, while the S&P 500 value index fell 1 per cent.
The Dow Jones Industrial Average fell 208.98 points, or 0.6 per cent, to 34,577.37, the S&P 500 lost 8.8 points, or 0.20 per cent, to 4,343.54 and the Nasdaq Composite added 24.32 points, or 0.17 per cent, to 14,663.64.
Last week, all three indexes posted their fifth consecutive quarterly gains. They scaled new highs on Friday.
Yesterday, 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 per cent after Chinese regulators ordered over the weekend the company’s app be taken down days after its US$4.4 billion (RM18.2 billion) listing on the New York Stock Exchange.
Other US-listed Chinese e-commerce firms also fell, including Alibaba Group, down 2.8 per cent, and Baidu, down 5 per cent.
Declining issues outnumbered advancing ones on the NYSE by a 1.86-to-1 ratio; on Nasdaq, a 2.18-to-1 ratio favoured 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 US exchanges was 10.12 billion shares, compared with the 10.8 billion average for the full session over the last 20 trading days. — Reuters
Source: Malay Mail
No comments:
Post a Comment