US STOCKS-S&P 500, Nasdaq fall as tech shares give up gains
07/06/2023 17:38
(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window.)
*
Netflix gains after Wells Fargo PT raise
*
Coinbase rebounds day after hitting seven-month low
*
Indexes: Dow up 0.04%, S&P down 0.28%, Nasdaq down 0.74%
(Updates at 11:59 a.m. ET/ 1559 GMT)
By Shubham Batra and Shristi Achar A
June 7 (Reuters) - S&P 500 and Nasdaq gave up early
gains to drop on Wednesday as technology stocks reversed course,
while investors awaited inflation data and the Federal Reserve's
policy meeting next week.
Major technology and growth stocks fell between 0.1% and
3.1%, barring Netlfix NFLX.O and Tesla TSLA.O , which rose
1.1% and 1.8%, respectively.
More than half of the S&P sub-sectors declined, led by
communication services .SPLRCL that lost 1.4%.
Inflation data in the U.S. is expected to show consumer
prices cooled slightly on a month-over-month basis in May but
core prices are likely to have remained elevated.
Pressuring stocks, the two-year US2YT=RR U.S. Treasury
yield and the benchmark 10-year US10YT=RR yield climbed after
the Bank of Canada raised interest rates, adding to market
apprehension around the Fed's interest rate decision. US/
Money market participants now see a 69% chance that the U.S.
central bank will skip raising interest rate 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 rally in megacap
stocks and a stronger-than-expected earnings season, with the
S&P 500 .SPX up almost 20% from its October 2022 lows.
The fall on Wednesday is reflective of a lack of confidence
in investors over the sustainability of the rally, as it is
dependent on a small concentration of major names, said Peter
Andersen, founder of Andersen Capital Management.
Some analysts say that big tech and other major growth
stocks could soon see some profit-taking.
Meanwhile, CBOE Volatility Index .VIX hit the lowest since
February 14, 2020.
Wells Fargo raised the price target on Netflix shares to
$500 from $400 per share, the highest on Wall Street, according
to Refinitiv.
Energy index .SPNY rose 2.5% after oil prices edged
higher, while the KBW Regional Banking Index .KRX hit a
2-month high.
At 11:59 a.m. ET, the Dow Jones Industrial Average .DJI
was up 14.33 points, or 0.04%, at 33,587.61, the S&P 500 .SPX
was down 12.17 points, or 0.28%, at 4,271.68, and the Nasdaq
Composite .IXIC was down 97.80 points, or 0.74%, at 13,178.62.
Among other stocks, Yext Inc YEXT.K soared 36.1% after the
New York-based online marketing firm raised its annual earnings
forecast.
Campbell Soup CPB.N fell 6.3% after the packaged food
maker posted lower third-quarter gross margin, dented by high
commodity and freight costs.
Coinbase shares COIN.O rose 2.2% 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 by a 2.04-to-1 ratio
on the NYSE and by a 1.37-to-1 ratio on the Nasdaq.
The S&P index recorded 17 new 52-week highs and no new low,
while the Nasdaq recorded 109 new highs and 23 new lows.
(Reporting by Shubham Batra and Shristi Achar A in Bengaluru
Editing by Vinay Dwivedi)
((Shubham.Batra@thomsonreuters.com;))