Nasdaq Hits New High As Growth Stocks Advance; The S&P 500 softens

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

  • Cyclical sectors lead the declines over the day
  • China’s tech crackdown hits Didi, Alibaba, Baidu
  • Dow down 0.57%, S&P down 0.26%, Nasdaq up 0.14%

July 6 (Reuters) – The Nasdaq hit an all-time high on Tuesday as growth-oriented sectors advanced, as Beijing’s regulatory crackdown hammered the shares of several Chinese companies listed in the United States.

The benchmark S&P 500, however, fell into negative territory shortly after opening at a record high thanks to gains from mega-cap tech companies such as Microsoft Corp (MSFT.O), Apple Inc (AAPL. O), Inc. (AMZN.O) and Alphabet Inc (GOOGL.O).

Nine of the top 11 sectors of the S&P 500 were trading lower, while technology (.SPLRCT), communications services (.SPLRCL) and consumer discretionary (.SPLRCD) were up.

Investors, meanwhile, were awaiting clues from the US Federal Reserve’s policy minutes on when quantitative easing could be reduced. It will be released on Wednesday. Read more

Wall Street is sensitive to any hint of a change in the Fed’s hawkish tone, as market participants have shifted from “value” and “growth” stocks out of fears that a potentially stronger-than-expected economic recovery will fail. forces the central bank to cut spending. his support.

The S&P 500 Growth Index (.IGX) also hit a record high on Tuesday, while the S&P 500 Stock Index fell 1.1%. Growth stocks posted their sixth consecutive weekly gain on Friday, outperforming their value counterparts.

“They’ve just been small new highs and that basically reflects the fact that investors think they have nowhere to go,” said Sam Stovall, chief investment strategist at CFRA.

“Confidence is supported by the fact that investors are willing to rotate rather than just bail out completely.”

Shares of Didi Global Inc (DIDI.N) fell 22.8% after Chinese regulators ordered over the weekend that the company’s app be removed days after it was listed on the New Stock Exchange. York for $ 4.4 billion. Read more

Other Chinese e-commerce companies listed in the United States, including Alibaba Group, Baidu Inc and, fell 2.4% to 4.5% as the Chinese crackdown also weighed on global markets.

At 10:07 am ET, the Dow Jones Industrial Average (.DJI) was down 199.70 points, or 0.57%, to 34,586.65, the S&P 500 (.SPX) was down 11.23 points, or 0.26%, to 4,341.11 and the Nasdaq Composite (.IXIC) is up 21.07 points, or 0.14%, to 14,660.40.

A survey showed that service sector activity in the United States grew at a moderate pace in June, possibly hampered by labor and raw material shortages, the non-manufacturing activity index of the Institute for Supply Management falling to 60.1 last month from 64.0 in May, which was its highest value. never. Read more

The second quarter earnings season is set to begin next week with the big banks, as investors also monitored the progress of President Joe Biden’s infrastructure bill.

Among other stocks, American Express Co (AXP.N) added 1.2% after Goldman Sachs upgraded its rating on the stock to “buy” from “neutral.”

The U.S.-listed shares of China’s two major video game streaming sites Huya (HUYA.N) and DouYu fell 2.3% and 6%, respectively, after China’s competition regulator announced that it would block Tencent Holdings Ltd’s (0700.HK) plan to merge the companies.

The mobile game company – Bilibili Inc fell 8.7%. Read more

Falling issues outnumbered advances for a 2.26-to-1 ratio on the NYSE to a 2.55-to-1 ratio on the Nasdaq.

The S&P Index recorded 40 new 52-week highs and no new lows, while the Nasdaq recorded 51 new highs and 46 new lows.

Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur

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