Wall Street ends down, pulled lower by growth stocks

NEW YORK, June 27 (Reuters) – U.S. shares closed decrease on Monday, with few catalysts to sway investor sentiment as they strategy the half-way level of a yr wherein the fairness markets have been slammed by heightened inflation worries and tightening Fed coverage. learn extra

The main U.S. inventory indexes misplaced floor after oscillating earlier within the session, with weak spot in rate of interest delicate megacaps similar to Amazon.com (AMZN.O), Microsoft Corp (MSFT.O) and Alphabet Inc (GOOGL.O) offering the heaviest drag.

“The explanation for lack of course this week and subsequent week is traders are searching for what’s going to occur within the second quarter reporting interval,” mentioned Sam Stovall, chief funding strategist of CFRA Analysis in New York.

All three indexes are on the right track to notch two straight quarterly declines for the primary time since 2015. In addition they seem set to publish losses for June, which might mark three consecutive down months for the tech-heavy Nasdaq, its longest shedding streak since 2015.

The S&P was on observe to report its fifth worst year-to-date value decline since 1962 as of Friday, Stovall mentioned.

“Each time the SPX rose by greater than 20% in a yr it fell by a mean of 11% beginning comparatively early within the new yr. And all years the place the decline began within the first half acquired again to interrupt even earlier than the yr was out.”

“No assure that’s going to occur this yr, however the market may shock us to the upside,” Stovall mentioned.

Rising oil costs helped put power shares (.SPNY) out entrance, with economically delicate smallcaps (.RUT) and semiconductors (.SOX) and transports (.DJT) additionally outperforming the broader market.

Financial information shocked to the upside, with new orders for sturdy items and pending house gross sales beating expectations and including credence to U.S. Federal Reserve Chairman Jerome Powell’s assertion that the financial system is powerful sufficient to face up to the central financial institution’s makes an attempt to rein in decades-high inflation with out sliding into recession. learn extra

The Dow Jones Industrial Common (.DJI) fell 62.42 factors, or 0.2%, to 31,438.26, the S&P 500 (.SPX) misplaced 11.63 factors, or 0.3%, to three,900.11 and the Nasdaq Composite (.IXIC) dropped 93.05 factors, or 0.8%, to 11,514.57.

Among the many 11 main sectors of the S&P 500, eight ended the session in unfavorable territory, with shopper discretionary (.SPLRCD) struggling the biggest proportion loss. Vitality shares have been the clear winners, gaining 2.8% on the day.

With a number of weeks to go till second-quarter reporting commences, 130 S&P 500 corporations have pre-announced. Of these, 45 have been optimistic and 77 have been unfavorable, leading to a unfavorable/optimistic ratio of 1.7 stronger than the primary quarter however weaker than a yr in the past, in keeping with Refinitiv information.

In prolonged buying and selling, Robinhood Markets (HOOD.O) fell 4% after FTX’s Sam Bankman-Fried mentioned his cryptocurrency trade was in no lively M&A conversations with the retail inventory buying and selling platform.

Within the earlier buying and selling session, Robinhood had jumped 14% after Bloomberg reported that FTX was exploring a deal. learn extra

Throughout Monday’s session, Coinbase International Inc (COIN.O) dropped over 10% after Goldman Sachs downgraded that cryptocurrency trade to “promote” from “purchase”.

Advancing points outnumbered declining ones on the NYSE by a 1.17-to-1 ratio; on Nasdaq, a 1.02-to-1 ratio favored decliners.

The S&P 500 posted one new 52-week excessive and 29 new lows; the Nasdaq Composite recorded 24 new highs and 84 new lows.

Quantity on U.S. exchanges was 10.91 billion shares, in contrast with the 12.95 billion common during the last 20 buying and selling days.

Reporting by Stephen Culp; extra reporting by Shreyashi Sanyal and Amruta Khandekar in Bengaluru, and by Noel Randewich in Oakland, Calif.; enhancing by Grant McCool

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