Major U.S. Averages Close Mixed; Nasdaq Climbs To Fresh Record High
The major U.S. averages ended mixed on Tuesday after a somewhat cautious session with investors weighing the likely impact of surging coronavirus of the Delta variant on the pace of economic recovery.
The Nasdaq closed at a fresh record high, while the Dow and the S&P 500 drifted lower. Expectations that the Federal Reserve will hold its accommodative monetary policy for a longer duration helped limit market’s downside.
The Dow ended down by 269.09 points or 0.76 percent at 35,100.00. The S&P 500 settled at 4,520.03, recording a loss of 15.40 points or 0.34 percent, while the Nasdaq ended up by 10.81 points or 0.07 percent at 15,374.33, after climbing to a new all-time high of 15,403.44.
Shares of Boeing Inc. drifted lower after Ryanair said it had ended discussions with the company with regard to a proposed purchase of Max 10 jets worth several billion dollars due to differences over price.
Amgen shares declined more than 2.5 percent following a rating downgrade by Morgan Stanley. Merck, down 1.6 percent, also fell due to a rating downgrade.
3M shed more than 4 percent. Honeywell International, Coca-Cola, Johnson & Johnson, WAlmart, IBM, Verizon and Walgreens Boots Alliance lost 1 to 2 percent.
Travelers Companies climbed more than 2.5 percent. Walt Disney shares gained about 1.8 percent and Apple surged up 1.4 percent. Netflix gained more than 2.5 percent, and Amazon ended nearly 1 percent up.
Shares of medical device manufacturer Tandem Diabetes Care, Inc soared more than 13 percent, buoyed by news the company is set to enter the S&P MidCap 400 effective from September 20.
Other markets
Asian stocks ended broadly higher on Tuesday, aided by hopes that U.S. interest rates would stay low for longer. Trading volumes were thin in the absence of fresh cues from Wall Street, which was closed overnight for a holiday.
Chinese shares rallied after government data showed the country’s exports grew more than expected in August.
European stocks ended lower on Tuesday after a cautious session amid signs of a slowdown in global economic recovery due to the surge in coronavirus cases of the Delta variant.
Investors also looked ahead to Thursday’s meeting of the European Central Bank, which may act to slow down its massive bond-buying program in light of recent stronger-than-expected inflation data.
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