Wall Street retreats from record levels as Apple weighs

Feb 02, 2018, 21:11
Wall Street retreats from record levels as Apple weighs

Rising bond yields and a sell-off in healthcare shares sent the United States stock market sliding on Tuesday, with the Dow Jones Industrial Average's 352-point tumble its steepest in eight months.

The fall followed the news that Amazon, JPMorgan Chase and Berkshire Hathaway would create a new healthcare company with the aim of lowering health costs for their USA employees.

They were the worst performers in the S&P 500 previous year and led the index lower today, each falling around 1 percent.

The Dow Jones industrial average dropped 241 points and briefly fell 352 points, with UnitedHealth as the biggest decliner. The Federal Reserve's two-day meeting, starting Tuesday, will be watched for comments that could increase the likelihood of interest rates being raised four times this year, instead of three.

More news: Budget 2018: people expects government's tendency towards rural economy and employment

Wall Street is rebounding from the worst two-day tumble since President Trump's election. Concerns are starting to enter the market that inflation could be catching up and higher interest rates could pour cold water on the bull run.

The tech-heavy Nasdaq shed 64 points or 0.86% to 7,402.48.

The Dow Jones Industrial Average rose 210 points, or 0.8%, to 26287. Microsoft and Facebook were both up more than 1 percent ahead of their results after the bell.

The CBOE Volatility Index, the most widely followed barometer of expected near-term stock volatility, topped 14 for the first time since December 1. U.S. stocks experienced a spectacular reversal and plummeted overnight, as the United States 10 year treasury yield pushed relentlessly higher.

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According to Bespoke Investment Group the S&P 500 could end its record streak without consecutive declines of 0.5 per cent. Japan's Nikkei ended down 0.8% as the yen strengthened against the dollar.

U.S. stock index futures drifted higher late on Tuesday as Trump gave his State of the Union address. Pfizer Inc was down 3.1 percent despite its better-than-expected earnings and upbeat 2018 guidance. They has risen about 2 percent earlier after the company's quarterly results and full-year forecasts beat expectations. Boeing, easily the best Dow stock since the start of 2017, soared 5% after reporting record annual profits.

Advancing issues outnumbered decliners on the NYSE by 1,567 to 1,298.

The index closed down 362.59 points at 26,076.89 in NY, with the broader S&P 500 index falling 31.10 points to 2,822.43.

More news: Central Intelligence Agency boss: 'I have every expectation' Russian Federation will meddle in 2018 midterms

Apple was down another 1.1 percent in premarket trading on Tuesday, still feeling the effects of news that the company will halve production of its $999 iPhone X smartphone.

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