US STOCKS-S&P 500, Nasdaq fall as tech shares give up gains
07/06/2023 19:45
(For a Reuters live blog on U.S., UK and European stock
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Netflix gains after Wells Fargo PT raise
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Coinbase rebounds day after hitting seven-month low
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Indexes: Dow up 0.04%, S&P down 0.28%, Nasdaq down 0.74%
(Updates prices throughout)
By Shubham Batra, Shristi Achar A and David Carnevali
June 7 (Reuters) -
U.S. stocks fell on Wednesday as a rotation out of
technology stocks dragged on the Nasdaq, while the S&P 500 slid
on profit-taking ahead of key economic and policy events next
week.
U.S. inflation data is expected to show consumer prices
eased slightly in May on a month-over-month basis but with
elevated core prices.
Weighing on stocks, the two-year US2YT=RR U.S. Treasury
yield and benchmark 10-year US10YT=RR yield climbed after the
Bank of Canada raised interest rates, adding to market
apprehension around the Federal Reserve's next interest rate
decision.
"Over the past week, we've seen a pretty dramatic
outperformance of small caps relative to large caps," said Paul
Baiocchi, investment firm SS&C ALPS Advisors chief ETF
strategist. "We're seeing that persist here today."
The small-cap index Russell 2000 .RUT jumped 1.60% as
investors kept moving away from megagap and growth stocks after
their recent run. The S&P 500 Growth index fell 0.62%.
Money market participants now see a 69% chance that the U.S.
central bank will skip raising interest rates in its June
meeting but will hike in July, down from nearly 77% earlier,
according to the CME's Fedwatch tool.
U.S. shares have recently been boosted by a megacap stocks
rally and a stronger-than-expected earnings season, with the S&P
500 .SPX up almost 20% from its October 2022 lows.
Some analysts expect profit-taking soon in big tech and
other major growth stocks.
Meanwhile, CBOE Volatility Index .VIX hit the lowest since
Feb. 14, 2020 at 13.84.
Wells Fargo raised the price target on Netflix NFLX.O
shares to $500 from $400, the highest on Wall Street, according
to Refinitiv. The streaming company advanced 0.73%.
Energy index .SPNY rose 2.62% after oil prices edged
higher, while the KBW Regional Banking Index .KRX hit a
2-month high.
The Dow Jones Industrial Average .DJI rose 71.82 points,
or 0.21%, to 33,645.1, the S&P 500 .SPX lost 11.76 points, or
0.27%, at 4,272.09 and the Nasdaq Composite .IXIC dropped
123.83 points, or 0.93%, to 13,152.59.
Yext Inc YEXT.K soared 39.58% after the New York-based
online marketing firm raised its annual earnings forecast.
Campbell Soup CPB.N fell 7.90% after the packaged food
maker posted a lower fiscal third-quarter gross margin, dented
by high commodity and freight costs.
Coinbase shares COIN.O rose 3.08% after hitting a
seven-month low on Tuesday as the Securities and Exchange
Commission sued the largest U.S. crypto exchange, accusing it of
operating illegally, without having first registered with
regulator.
Cathie Wood's Ark Invest bought 419,324 shares of Coinbase
on Tuesday.
Advancing issues outnumbered decliners on the NYSE by a
1.76-to-1 ratio; on Nasdaq, a 1.34-to-1 ratio favored advancers.
The S&P 500 posted 19 new 52-week highs and no new lows; the
Nasdaq Composite recorded 114 new highs and 30 new lows.
(Reporting by Shubham Batra and Shristi Achar A in Bengaluru
Editing by Vinay Dwivedi and Richard Chang)
((Shubham.Batra@thomsonreuters.com;))