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U.S. indexes fall from record high set last week

By Ishika Dangayach on Jul 07, 2021 | 05:37 AM IST

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The major stock indexes in the United States dropped on Tuesday, falling from record highs set just a week ago.

The S&P 500 dropped 0.6 %, indicating that the index's current winning streak may be coming to an end. The broad-based index finished at a record high for the sixth straight trading day on Friday, its longest stretch since 1997.

The Dow Jones Industrial Average fell 328 points, or 0.9 %, while the Nasdaq Composite fell 0.2 %. Markets in the United States were closed on Monday in observance of the Independence Day holiday.

Energy, financials, industrials, and materials were among the eight major S&P 500 sectors trading lower. Gains were made in technology and consumer discretionary.

Rate-sensitive banks dropped 2.9 % as the 10-year US Treasury yield plummeted to its lowest level since February 24.

Stock indices in the United States have risen in recent weeks, buoyed by evidence of an economic recovery and a strengthening labor market. Concerns about inflation have also subsided, and major central banks have stated that they will maintain accommodating monetary policies, for the time being, WSJ reported. 

In other developments, Didi Global shares fell 21% as China initiated a cybersecurity investigation into the ride-hailing business days after it went public.

Other Chinese e-commerce businesses listed in the United States, such as Alibaba Group, Baidu Inc, and JD.com, dropped between 3.5 % and 4.6 %, as the Chinese crackdown weighed on global markets.

Oil prices have fallen from recent highs, raising concerns about whether supply will be able to keep up with rising energy demand.

West Texas Intermediate futures, the benchmark for US oil, fell 2.1 % from Friday to $73.59 a barrel. WTI futures gained 2.4 % earlier in the day to their biggest intraday level since the late-2014 oil market collapse.

The second-quarter earnings season will go out next week with large banks, while investors will also be looking for updates on President Joe Biden's infrastructure package.

Gold futures rose 1% to $1,800.90 per troy ounce, the highest level in three weeks.


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