Nasdaq hits record as Dow, S&P slide as service sector cools
US stock markets ended mixed on Tuesday, with the Nasdaq hitting record highs despite signs of a slowdown in the services sector.
The Nasdaq rose 0.17% to end at a new high, while the Dow Jones Industrial Average and S&P 500 fell from their all-time highs, ending down 0.59% and 0.2% respectively.
|Me: DJI||MEDIUM DOW JONES||34577.37||-208.98||-0.60%|
|I: COMP||NASDAQ COMPOSITE INDEX||14663.640373||+24.32||+ 0.17%|
The Institute for Supply Management said the service sector, which accounts for more than two-thirds of economic activity, cooled last month as supply chain problems caused by COVID-19 continued to cause disturbances. The institute’s non-manufacturing index reading fell to 60.1 last month after hitting a record 64.0 in May. Any reading above 50 indicates the industry is expanding.
West Texas Intermediate crude oil prices fell sharply after climbing from $ 1.82 to $ 76.98 a barrel after production talks between OPEC and its allies broke down. The split in the group comes as the United Arab Emirates, the world’s fourth largest producer, declined Saudi Arabia’s deal to increase production, wanting instead to pump more of its oil as part of any deal. WTI closed lower $ 1.79 to $ 73.37.
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In stocks, oil-related companies including Chevron Corp., Halliburton Corp. and Occidental Petroleum Corp., were the center of attention.
Elsewhere, Didi Global Corp. was down sharply after Chinese regulators said new users in the country could not download the app until a cybersecurity review of the company was completed. Shares had fallen 6.73% in the first three days of trading.
|HAVE I GOT||DIDI GLOBAL INC||12.59||-2.94||-18.91%|
|NIO||NIO, INC. (CHINA)||50.30||-0.10||-0.19%|
Other Chinese companies, like Alibaba Group Holdings, Baidu Inc. and Nio, were all trading lower amid fears of a large-scale crackdown by the Chinese government.
Meanwhile, Amazon Inc. shares hit a record high after founder Jeff Bezos stepped down as CEO on Monday, 27 years after founding the company. Bezos, who is now executive chairman, will be replaced by chief cloud computing officer Andy Jassy.
|AMZN||AMAZON.COM, INC.||3,675.75||+164.76||+ 4.69%|
|MSFT||MICROSOFT CORP.||277.66||+0.01||+ 0.00%|
|ORCL||ORACLE CORP.||83.08||+1.26||+ 1.54%|
The e-commerce giant’s actions also had an impact on news that the Pentagon canceled the $ 10 billion Joint Enterprise Defense Infrastructure (JEDI) contract that had been awarded to Microsoft Corp. Amazon had previously argued that the contract was awarded to Microsoft because of former President Donald Trump. aversion to business and Bezos. Oracle also challenged the original attribution.
The effectiveness of Pfizer Inc.’s COVID-19 vaccine has fallen to 64% since June 6, Israel said Monday. Yet the vaccine offers 95% protection against serious illness and prevents hospitalization.
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Overseas markets were generally down.
The German DAX paced the decline in Europe, yielding 0.96% while the French CAC lost 0.91% and the British FTSE 100 fell 0.89%.
In Asia, Hong Kong’s Hang Seng index slipped 0.25%, China’s Shanghai Composite fell 0.12%, and Japan’s Nikkei 225 rose 0.16%.