NEW YORK, June 20 (Reuters) – Wall Street shares weakened on Tuesday as investors began the holiday-shortened week by taking profits after a sustained rally amid signs of weakening global demand.
Federal Reserve Chairman Jerome Powell’s congressional testimony tomorrow is shaping up to be a potential market mover.
All three major US stock indices were in the red but off session lows, with oil majors Exxon Mobil Corp among the heavy hitters.
The sell-off comes on the heels of the longest weekly winning streak for the Nasdaq since March 2019, and the longest for the S&P 500 since November 2021.
As of Friday’s close, the benchmark S&P 500 index had advanced 20% in the past twelve months and more than 14% year-to-date.
“We’ve had a very strong rise in the market lately, driven by the AI talk, which has helped big tech companies,” said Tim Ghriskey, a senior portfolio strategist at Ingalls & Snyder in New York. “It’s been such a steep rise that it’s natural that some profits will be taken. At some point, the sellers will come in and take profits.”
Investors now watch Powell’s two-day monetary policy testimony before Congress, beginning with the US House Financial Services Committee on Wednesday.
“There is still bearish speculation that the Fed will stay on high for longer and not cut rates anytime soon,” Ghriskey added.
Concerns about slowing global demand grew bigger after China cut its credit references to boost sluggish demand, which offset a 21.7% increase in housing startedthe largest monthly jump in thirty years.
At 2:23 p.m. ET, the Dow Jones Industrial Average (.DJI) fell 176.8 points, or 0.52%, to 34,122.32, the S&P 500 (.SPX) lost 14.38 points, or 0.33%, to 4,395.21 and the Nasdaq Composite (.IXIC) it fell 16.70 points, or 0.12%, to 13,672.88.
Nine of the 11 major sectors of the S&P 500 fell, led by a 2.4% drop in energy stocks, the biggest daily drop for the sector so far this month, as signals of weakening were sent from the S&P 500. Chinese demand. crude oil prices sliding.
The electric vehicle rivals Rivian Automotive Inc. (RIVN.O) and Tesla Inc. (TSLA.O) rose 3.1% and 3.9%, respectively, after Rivian announced had agreed to adopt Tesla’s charging standard.
PayPal Holdings (PYPL.O) rose 4.0% after KKR & Co (KKR.N) agreed to buy up to 40 billion euros ($43.71 billion) in “buy now, pay later” loans from the payment firm in Europe.
Nike (NO) It fell 3.5% after Morgan Stanley said it expected margin pressure from the company’s excess inventory.
US-listed shares of Alibaba Group fell 4.4% after the e-commerce company Announced Daniel Zhang would step down from his roles as CEO and Chairman to focus on the company’s cloud division.
adobe inc (ADBE.O) fell 2.1% after a report that European antitrust regulators were preparing to investigate the company’s deal to buy the cloud-based design platform Figma.
Dice Therapeutics Inc. (SAYS.O) rose 37.5% after Eli Lilly and Co (LLY.N) he said he would buy the company in an all-cash deal for about $2.4 billion.
Issues going down outnumbered going up on the New York Stock Exchange by a ratio of 2.11 to 1; on Nasdaq, a 1.57-to-1 ratio favored decliners.
The S&P 500 posted 11 new 52-week highs and no new lows; the Nasdaq Composite posted 62 new highs and 74 new lows.
Reporting by Stephen Culp; Additional reporting by Shristi Achar A, Shubham Batra and Johann M Cherian in Bengaluru; Edited by Aurora Ellis
Our standards: The Thomson Reuters Trust Principles.
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