SUBSCRIBE

CATEGORIES

Wall Street declines; investors take profits on financials

imageStock Markets9 minutes ago (Jul 06, 2021 03:41PM ET)

(C) Reuters. FILE PHOTO: A security camera is seen next to signage outside of the New York Stock Exchange (NYSE) in New York City, New York, U.S., June 28, 2021. REUTERS/Andrew Kelly

By Caroline Valetkevitch

NEW YORK (Reuters) – U.S. stocks were lower in Tuesday afternoon trading, led by declines in the Dow Jones Industrial Average as investors took profits in some of the groups tied most closely to economic growth.

Bank stocks fell as U.S. Treasuries rallied, with the 10-year yield hitting its lowest level since Feb. 24. [US/]

Along with financials, energy and materials led declines.

At the same time, a regulatory crackdown by Beijing drove a selloff in shares of several U.S.-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 investors may be taking profits after a strong end of the quarter.

“It was such a good quarter end,” he said. Now, “cyclicals are really getting hit.”

With Treasury yields down, “investors may be worried the economy might not be a good as the stock market was showing,” he said.

The S&P 500 growth index also hit a record high on Tuesday, while the S&P 500 value index was down more than 1%.

The Dow fell 277.1 points, or 0.8%, to 34,509.25, the S&P 500 lost 18.84 points, or 0.43%, to 4,333.5 and the Nasdaq Composite dropped 14.12 points, or 0.1%, to 14,625.20.

Data showed U.S. services industry activity grew at a moderate pace in June, likely restrained by labor and raw material shortages.

The CBOE Volatility index rose to its highest in two weeks.

Didi Global shares fell 21.1% 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, including Alibaba (NYSE:BABA) Group, Baidu Inc (NASDAQ:BIDU) and JD (NASDAQ:JD).com, fell between 2.8% and 4.9% with the Chinese crackdown also weighing on global markets.

(Graphic: Nasdaq record vs yields, https://fingfx.thomsonreuters.com/gfx/mkt/rlgvdrajovo/MicrosoftTeams-image%20(12).png)

Declining issues outnumbered advancing ones on the NYSE by a 2.31-to-1 ratio; on Nasdaq, a 2.57-to-1 ratio favored decliners.

The S&P 500 posted 47 new 52-week highs and no new lows; the Nasdaq Composite recorded 66 new highs and 73 new lows.

Wall Street declines; investors take profits on financials

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.