- Cyclical sectors lead declines
- Nasdaq posts record closing high
- China tech crackdown hits Didi, others
NEW YORK, July 6 (Reuters) – The Dow and S&P 500 fell on Tuesday as investors took profits in some of the groups tied most closely to economic growth, while the Nasdaq edged higher to another closing record.
Bank stocks (.SPXBK) fell as U.S. Treasuries rallied, with the 10-year yield hitting its lowest level since Feb. 24.
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 (DIDI.N).
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 and string of recent records.
“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.
Last week, all three indexes posted their fifth consecutive quarterly gains. They scaled new highs on Friday.
The S&P 500 growth index (.IGX) also hit a record high on Tuesday, while the S&P 500 value index was down.
Unofficially, the Dow Jones Industrial Average (.DJI) fell 204.9 points, or 0.59%, to 34,581.45, the S&P 500 (.SPX) lost 8.74 points, or 0.20%, to 4,343.6 and the Nasdaq Composite (.IXIC) added 24.32 points, or 0.17%, to 14,663.64. Data showed U.S. services industry activity grew at a moderate pace in June, likely restrained by labor and raw material shortages. read more
The CBOE Volatility index (.VIX) rose.
Didi Global shares fell 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. read more
Other U.S.-listed Chinese e-commerce firms, including Alibaba Group also fell.
Additional reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur, Maju Samuel and David Gregorio
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