Big technology stocks were the biggest weight on the market as China increases restrictions on internet apps and other companies.
Associated Press
July 26, 2021 / 08:19 PM IST
Stocks wobbled between small gains and losses in morning trading on Wall Street Monday as investors pause after the market rallied to more record highs last week.
The S&P 500 index fell 0.1% as of 10:16 a.m. and is hovering close to the record it set on Friday. The Dow Jones Industrial Average fell 73 points, or 0.2%, to 34,986 and the Nasdaq rose 0.1%.
Big technology stocks were the biggest weight on the market as China increases restrictions on internet apps and other companies. China’s industry ministry announced a 6-month campaign to clean up what it says are serious problems with internet apps violating consumer rights, cyber security and “disturbing market order.” Internet giant Tencent’s U.S.-listed shares fell 1% following orders by regulators to end exclusive contracts with music copyright holders.
The announcement pulled most indexes in Asia lower. Hong Kong’s Hang Seng sank 4.1% and the Shanghai Composite index dropped 2.1%.
Investors are still monitoring a steady flow of corporate earnings this week and listening for any statements from the Federal Reserve about potential policy changes on bond purchases and interest rates. The central bank will meet this week and a statement on interest rate policy is scheduled for Wednesday.
Investors are looking for more information on how the Fed will react to continued economic growth, but with the virus pandemic still lingering as a threat. Wall Street expects the central bank to eventually taper its support, but is looking for clues on how much of a pullback will occur and how soon.
A wide range of companies continued reporting earnings. While the results have been mostly solid, Wall Street’s reaction has been mixed. Elevator maker Otis fell 1.6%, despite reporting solid financial results, while toymaker Hasbro jumped 9.2% after handily beating analysts’ profit forecasts.
Electric vehicle company Lucid Motors rose 6.9% in its public debut after being bought by blank-check company Churchill Capital Corp.
The price of Bitcoin rose 13% to $ 38,000, according to Coindesk. Amazon is reportedly considering accepting it as payment and considering its own cryptocurrency for purchases.
