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4 minutes, by Reuters (Reuters) – On Tuesday, the Nasdaq set a new high as growth-oriented sectors rose, but shares of some U.S.-listed Chinese companies fell due to Beijing’s regulatory crackdown. PHOTO FROM THE FILE: 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 On increases in mega-cap technology giants such as Microsoft Corp, Apple Inc, Amazon.com Inc, and Alphabet Inc, the benchmark S&P 500 index, on the other hand, dipped into negative territory quickly after opening at an all-time high. Nine of the S&P 500’s 11 major sectors were trading lower, while technology, communication services, and consumer discretionary were trading higher. Meanwhile, investors awaited hints from the US Federal Reserve’s decision minutes as to when quantitative stimulus will be reduced. On Wednesday, it will be released. Market investors have swung between “value” and “growth” equities on fears that a possible stronger-than-expected economic rebound may force the central bank to roll back its assistance. On Tuesday, the S&P 500 growth index reached a new high, while the S&P 500 value index sank 1.1 percent. On Friday, growth stocks outperformed their value counterparts for the sixth week in a row. Growth vs. Value Graph – “They’ve just been minor new highs,” said Sam Stovall, chief investment strategist at CFRA. “It’s just a reflection that investors feel they have nowhere else to go.” “The fact that investors are ready to rotate rather than bail out completely underpins the confidence.” Didi Global Inc’s stock dropped 22.8 percent 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. Other U.S.-listed Chinese e-commerce companies, such as Alibaba Group, Baidu Inc, and JD.com, slumped between 2.4 and 4.5 percent, with the Chinese crackdown dragging on global markets as well. The Dow Jones Industrial Average was down 199.70 points, or 0.57 percent, to 34,586.65 at 10:07 a.m. ET, while the S&P 500 was down 11.23 points, or 0.26 percent, to 4,341.11 and the Nasdaq Composite was up 21.07 points, or 0.14 percent, to 14,660.40. The Institute for Supply Management’s non-manufacturing activity index fell to 60.1 last month from 64.0 in May, which was its highest score ever, indicating that U.S. services industry activity rose at a sluggish pace in June, mainly due to labor and raw material shortages. The big banks’ second-quarter earnings season starts next week, and investors are keeping an eye on President Joe Biden’s infrastructure program. American Express Co rose 1.2 percent, among other companies, after Goldman Sachs upgraded the stock to “buy” from “neutral.” Huya and DouYu, China’s top two videogame streaming sites, both traded on the New York Stock Exchange, plummeted 2.3 percent and 6%, respectively, after China’s antitrust authority warned it would block Tencent Holdings Ltd’s intention to integrate the companies. Bilibili Inc, a mobile game company, slumped 8.7%. On the NYSE, decliners outweighed advancers by 2.26-to-1, while on the Nasdaq, decliners outnumbered advancers by 2.55-to-1. The S&P 500 index made 40 new 52-week highs while the Nasdaq made 51 new highs and 46 new lows. In Bengaluru, Devik Jain and Shreyashi Sanyal reported; Arun Koyyur edited./nRead More

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