S&P 500, Dow retreats after the rally; Nasdaq continues to progress

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(Reuters) – The Wall Street S&P 500 and Dow Jones Indices fell Tuesday as the tech-rich Nasdaq hit a record high for the third consecutive session as investors watched the Federal Reserve meeting. this week for signs on how he envisions a rebounding economy.

FILE PHOTO: Traders wearing masks work, the first day of in-person trading since the closure during the onset of coronavirus disease (COVID-19) on the floor at the New York Stock Exchange (NYSE) in New York, USA, May 26, 2020. REUTERS / Brendan McDermid

The S&P 1500 airline index fell 7.3%, while cruise lines Carnival Corp and Norwegian Cruise Line Holdings Ltd fell between 6.4% and 6.6% after their strong recovery amid recent signs of ‘a resumption of world travel.

Financial, industrial and energy stocks, which have jumped in recent weeks in the hope of an improved economic outlook weighed on the S&P 500 benchmark.

Technology and communications services and consumer discretionary stocks were in positive territory.

The Nasdaq has become the first of the major Wall Street indices to confirm a new bull market after hitting a low on March 23. The rally in US stocks accelerated last week after employment data in May was particularly optimistic. The worst economic impact of the pandemic was the worst. more than.

The S&P 500 benchmark, which wiped out its losses for the year on Monday, is about 5% lower than its own historic record.

“This is a very lukewarm decline in stocks, a little more focused on the first cyclical stocks which look like profit taking after their very impressive rallies in recent weeks,” said Yousef Abbasi, market strategist at INTL FCStone in New York.

Although no major political announcement is expected when the US central bank closes its two-day meeting on Wednesday, investors will be eager to hear its comments on the health of the economy.

The closely watched US yield curve widened the most since March, as US data improved. Investors will also monitor whether the Fed will introduce rate curve controls.

At 12:57 pm ET, the Dow Jones Industrial Average lost 213.68 points, or 0.77%, to 27,358.76, the S&P 500 lost 20.58 points, or 0.64%, to 3,211.81. The Nasdaq Composite rose 44.49 points, or 0.45%, to 9,969.23.

Financial market operators, including the New York Stock Exchange, held a moment of silence in honor of George Floyd, a 46-year-old African American who died on May 25 after a white policeman knelt on his neck for almost nine minutes.

Falling emissions outnumbered the advancers by a ratio of 3.79: 1 on the NYSE and a ratio of 2.10: 1 on the Nasdaq.

The S&P index recorded five new highs over 52 weeks and no new lows, while the Nasdaq recorded 33 new highs and no new lows.

Report from Medha Singh and Devik Jain in Bengaluru; Editing by Uttaresh.V and Shounak Dasgupta

Our standards:Principles of the Thomson Reuters Trust.

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