Tech weighs on Wall Street as virus cases mount
By Medha Singh (Reuters) - U.S. stocks were set to fall for the second straight day on Friday as friction between United States and China and fears over rising U.S. COVID-19 cases dampened demand for risky assets
By Medha Singh
(Reuters) - U.S. stocks were set to fall for the second straight day on Friday as friction between United States and China and fears over rising U.S. COVID-19 cases dampened demand for risky assets.
Shares of Intel Corp
Rival Advanced Micro Devices Inc
Shares of U.S. drugmakers fell ahead of executive orders by President Donald Trump aimed at lowering drug prices.
The healthcare index <.SPXHC> shed 1.4%.
The S&P 500 and the Dow are set to clock in their first weekly decline in four as investors feared that the COVID-19 health crisis that has spiraled in recent weeks and has infected over 4 million Americans, could hamper a recovery in economic activity.
Optimism about a potential coronavirus vaccine and fiscal stimulus package had helped the benchmark S&P 500 hit a five-month high earlier this week.
"U.S. equities are in consolidation mode for a good reason. We've seen a strong performance in the last three months," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis, Minnesota.
"When you look further into the second half of the year, there's reason to expect some volatility in the broad market ... the duration and impact of COVID-19 is still unknown."
Latest survey showed U.S. business activity increased to a six-month high in July, but companies reported a drop in new orders as a resurgence in new COVID-19 cases weighed on demand.
Sentiment took a hit earlier in the day after Beijing ordered Washington to close its consulate in the city of Chengdu, days after U.S. ordered the closure of the Chinese consulate in Houston.
At 12:43 p.m. ET, the Dow Jones Industrial Average <.DJI> was down 159.53 points, or 0.60%, at 26,492.80 and the S&P 500 <.SPX> was down 24.03 points, or 0.74%, at 3,211.63. The Nasdaq Composite <.IXIC> was down 118.90 points, or 1.14%, at 10,342.51.
Of the 113 S&P 500 companies that have reported quarterly results, 80.5% of them have beaten dramatically lowered profit estimates, according to IBES Refinitiv data.
Oilfield services giant Schlumberger NV
American Express Co
Declining issues outnumbered advancers for a 1.70-to-1 ratio on the NYSE and for a 2.33-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and no new low, while the Nasdaq recorded 19 new highs and 17 new lows.
(Reporting by Medha Singh and Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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