• S&P 500 snaps 7-day winning streak, Dow falls 200 points

    7 Jul 2021 | SET News

S&P 500 snaps 7-day winning streak, Dow falls 200 points


Stocks stumbled on Tuesday as Wall Street kicked off the holiday-shortened week with concern that maybe the best of the economic recovery from the pandemic is behind us.


The Dow Jones Industrial Average fell 208.98 points to 34,577.37, dragged down by losses in Dow Inc., Caterpillar, JPMorgan and Chevron.


The S&P 500 dipped 0.2% to 4,343.54 after hitting a record at the open.
The 500-stock index snapped a seven-day winning streak, its longest since August.


The Nasdaq Composite rose 0.17% to 14,663.64, closing at a new record. U.S. markets were closed for the July Independence Day holiday on Monday.

 

Investors are juggling several signs that the rapid economic growth from the depths of the pandemic could be peaking. The ISM Services index, a major gauge of the services sector, slowed to 60.1 in June from a record in the prior month, data released Tuesday showed. Economists polled by Dow Jones expected a print of 63.5. This follows Friday’s jobs report, which showed the unemployment rate rose back up to 5.9% against the 5.6% expectation.


Bond yields also fell on Monday, with the 10-year Treasury yield below 1.4% — further evidence that investors are doubting the strength of the U.S. economy.


Many on Wall Street expect smaller and choppier gains from the rest of the year after a strong performance in the first half amid a historic economic reopening. The S&P 500 is up nearly 16% year to date.


Wall Street’s consensus year-end target for the S&P 500 stands at 4,276, representing a near 2% loss from the 500-stock average’s current level, according to the CNBC Market Strategist Survey that rounds up 16 top strategists’ forecasts.

 

Citi analysts told clients they are concerned about central bank policy and see potential that earnings reports, which begin in a few weeks, could fall short of expectations. They suggest July could be “an unsettling month,” due to “loftier inherent expectations” following such strong first-quarter reports.


Investors await the release of June Federal Open Market Committee meeting minutes due Wednesday for clues about the central bank’s behind-the-scenes discussions on winding down its quantitative easing program.

 

U.S. stock futures are slightly lower after S&P 500 snaps 7-day winning streak

Dow Jones Industrial Average futures fell by 54 points, or 0.16%. S&P 500 and Nasdaq 100 futures dipped 0.10% and 0.06%, respectively.

Reference: CNBC

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