- Rivian announces the introduction of the Tesla charging standard
- New home starts hit a 13-month high
- Fed Chair Powell’s two-day testimony before Congress begins Wednesday
- Indices down: Dow 0.52%, S&P 0.33%, Nasdaq 0.12%
NEW YORK, June 20 (Portal) – Wall Street shares fell on Tuesday as investors started the holiday week by taking profits on a sustained rally amid signs of weakening global demand.
Fed Chair Jerome Powell’s testimony before Congress tomorrow looks set to be a potential market mover.
All three major US stock indices were down but off session lows, with oil supercorp Exxon Mobil Corp among the heaviest weights.
The broad sell-off follows the Nasdaq’s longest weekly winning streak since March 2019 and the S&P 500’s longest since November 2021.
As of Friday’s close, the benchmark S&P 500 was up 20% over the past 12 months and over 14% so far this year.
“We’ve seen a very strong rise in the market lately, fueled by AI chatter, which has helped the big tech companies,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. “It was such a strong increase that some profit-taking is quite normal. Eventually the sellers will come and take profits.”
Investors are now watching 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 hold for longer and not cut rates anytime soon,” Ghriskey added.
Concerns about a slowdown in global demand mounted after China lowered its lending benchmarks to boost sluggish demand, offsetting a 21.7% rise in housing starts, the biggest monthly rise in thirty years.
At 2:23 p.m. ET, the Dow Jones Industrial Average (.DJI) was down 176.8 points, or 0.52%, to 34,122.32, the S&P 500 (.SPX) was down 14.38 points, or 0.33%, to 4,395 .21 and the Nasdaq Composite (.IXIC). ) fell 16.70 points, or 0.12%, to 13,672.88.
Nine of the S&P 500’s 11 major sectors posted losses, led by a 2.4% decline, with energy stocks slumping, the sector’s biggest one-day fall so far this month, as signs of weaker Chinese demand sent crude oil prices tumbling.
Electric vehicle rivals Rivian Automotive Inc (RIVN.O) and Tesla Inc (TSLA.O) rose 3.1% and 3.9%, respectively, after Rivian announced it had agreed to adopt Tesla’s charging standard.
PayPal Holdings (PYPL.O) rose 4.0% after KKR & Co (KKR.N) agreed to refinance the payments company’s buy-now, pay-later loans in Europe worth up to €40 billion (March 43). .71 billion US dollars).
Nike (NKE.N) slipped 3.5% after Morgan Stanley said it expected margin pressure from the company’s inventory glut.
US-listed shares of Alibaba Group fell 4.4% after the e-commerce company announced that Daniel Zhang would step down from his roles as CEO and chairman and focus on the company’s cloud division.
Adobe Inc (ADBE.O) fell 2.1% after reports that European antitrust authorities were preparing an investigation into the company’s deal to buy cloud-based designer platform Figma.
Dice Therapeutics Inc (DICE.O) surged 37.5% after Eli Lilly and Co (LLY.N) announced it would buy the company for about $2.4 billion in cash.
Declining issuance outpaced rising issuance by a ratio of 2.11 to 1 on the NYSE; On the Nasdaq, a 1.57-to-1 ratio favored the losers.
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
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