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Reuters, NEW YORK, July 6 – On Tuesday, the Dow and S&P 500 sank as investors grabbed profits in some of the stocks most closely linked to economic growth, while the Nasdaq rose to a new high. As U.S. Treasuries surged, bank stocks (.SPXBK) plummeted, with the 10-year yield touching its lowest level since February 24. The Dow led the day’s losses, as financials (.SPSY) and energy (.SPNY) stocks weighed on the S&P 500. At the same time, a regulatory crackdown by Beijing prompted a selloff in shares of numerous Chinese companies listed on the New York Stock Exchange, including Didi Global Inc. (DIDI.N). Investors may be taking profits following a solid close to the quarter and a streak of recent records, according to Alan Lancz, president of Alan B. Lancz & Associates Inc., an investment advice firm based in Toledo, Ohio. He said, “It was such a great quarter end.” “Cyclicals are really getting hit now,” says the author. “Investors may be concerned that the economy is not as good as the stock market is showing,” he said, as Treasury yields have fallen. On June 28, 2021, a surveillance camera is spotted outside the New York Stock Exchange (NYSE) in New York City, New York, United States. ANDREW KELLY/REUTERS All three indices gained for the fifth quarter in a row last week. On Friday, they reached fresh highs. On Tuesday, the S&P 500 growth index (.IGX) set a new high, while the S&P 500 value index fell. The Dow Jones Industrial Average (.DJI) dropped 204.9 points, or 0.59 percent, to 34,581.45, the S&P 500 (.SPX) sank 8.74 points, or 0.20 percent, to 4,343.6, and the Nasdaq Composite (.IXIC) rose 24.32 points, or 0.17 percent, to 14,663.64. The services industry in the United States grew at a sluggish pace in June, likely due to manpower and raw material constraints. find out more The CBOE Volatility Index (.VIX) increased in value. Didi Global’s stock dropped after Chinese officials ordered the company’s app to be taken down over the weekend, just days after its $4.4 billion IPO on the New York Stock Exchange. find out more Other Chinese e-commerce companies that are publicly traded in the United States, such as Alibaba Group, have also dropped. In Bengaluru, Devik Jain and Shreyashi Sanyal contributed additional reporting; Arun Koyyur, Maju Samuel, and David Gregorio edited the piece. The Thomson Reuters Trust Principles are our standards./nRead More

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