NEW YORK: The S&P 500 and the Nasdaq retreated on Tuesday as Federal Reserve Chair Jerome Powell warned the US economic recovery remained far from complete, with a selloff in some of the biggest technology companies also weighing on sentiment.
The domestic rebound could still slip into a downward spiral if the coronavirus is not effectively controlled and growth sustained, Powell said.
Six of the 11 major S&P sectors were up, with the battered energy index tracking a 2% jump in oil prices.
A rotation into value-linked sectors such as industrials helped boost the blue-chip Dow, but the Nasdaq slipped further away from record highs following a dip in shares of heavyweight technology mega-caps.
Amazon.com Inc, Apple Inc, Facebook Inc and Google-owner Alphabet Inc fell between 0.8% and 1.6% after news about a US House of Representatives’ antitrust report containing a “thinly veiled call to break up” the companies.
Declines in their share prices led the S&P 500 growth index down 0.4%.
At 12:37 p.m. ET, the Dow Jones Industrial Average was up 0.10%, the S&P 500 was down 0.06%, and the Nasdaq Composite was down 0.26%.
A 1.2% jump helped the S&P banking subindex outperform the benchmark index as US long-dated Treasury yields climbed to four-month peaks.
Boeing Co fell 3.0% after the planemaker cut its rolling 20-year forecast for airplane demand due to the fallout from the Covid-19 pandemic.—Reuters
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