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Sept. 7 (Reuters) – The S&P 500 fell on Tuesday as the Nasdaq hit an all-time high, investors balancing concerns about the slowing economic recovery with expectations that the Federal Reserve will maintain its accommodative monetary policy.
Amgen Inc (AMGN.O) fell 2.3% and Merck & Co (MRK.N) fell 1.6% after Morgan Stanley downgraded its rating on stocks to ‘on par’ from ‘overweight’ “.
The Nasdaq (.IXIC) hit its highest level on record, driven by Big Tech stocks which have fueled Wall Street gains in recent years. Apple (AAPL.O) climbed 1.5% and Netflix (NFLX.O) added 3%, both also hitting record highs. Amazon (AMZN.O) gained 1.3%.
“You could call it a gravitation towards Big Tech. As people feel a little unsure of how COVID will play out, you don’t have your worries about reopening with these companies,” said Tom Martin, senior portfolio manager at Globalt Investments in Atlanta.
Much of the rest of Wall Street has fallen. Eight of the eleven sub-indices traded lower, with economically sensitive sectors such as Industrials (.SPLRCI), Real Estate (.SPLRCR) and Materials (.SPLRCM) leading the declines.
Lukewarm payroll data from August Friday last week raised concerns about the slowing economic recovery.
Easygoing central bank policies and reopening optimism have pushed benchmarks to record highs in recent weeks, but concerns about the rise in coronavirus infections from the Delta variant and its impact on the economic recovery could hamper recovery.
In afternoon trading, the Dow Jones Industrial Average (.DJI) lost 0.58% to 35,164 points, while the S&P 500 (.SPX) lost 0.20% to 4,526.57 .
The Nasdaq Composite (.IXIC) added 0.2% to 15,394.91.
The S&P 500 hit a record high on Thursday and is up about 20% year-to-date.
Boeing Co (BA.N) fell 1.8% after Ireland’s Ryanair (RYA.I) said it ended talks with the aircraft manufacturer over the purchase of 737 MAX 10 worth several tens of billions of dollars due to price differences. Read more
Shares of Match Group Inc (MTCH.O) jumped 6.4% after the S&P Dow Jones indices on Friday announced that parent company Tinder would join the benchmark.
Columbia Property Trust Inc (CXP.N) jumped 15% after Pacific Investment Management Company announced it would buy the company for $ 2.2 billion. L4N2Q92J1
Falling issues outnumbered advancing ones on the NYSE by a 2.01 to 1 ratio; on the Nasdaq, a ratio of 1.50 to 1 favored the declines.
The S&P 500 posted 16 new 52 week highs and 1 new low; the Nasdaq Composite recorded 107 new highs and 18 new lows.
Reporting by Noel Randewich; Additional reporting by Shashank Nayar in Bengaluru; Editing by Anil D’Silva and Arun Koyyur; Editing by Aurora Ellis
Our Standards: Thomson Reuters Trust Principles.
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