Sliding tech stocks weigh on Wall Street
US stocks slipped today as poor performances among technology heavyweights weighed heavily on Wall Street’s main benchmarks.
The tech-heavy Nasdaq slipped 0.10 per cent to 15,250.36 points, led down by losses among Apple, Microsoft and Amazon.
The blue-chip S&P 500 and the Dow Jones both inched up, rising 0.02 per cent and 0.08 per cent to 4,529.35 points 35,430.44 points respectively.
Global markets briefly rebounded during early morning trading on the Fed signalling it will gradually wind down its ultra-accommodative monetary policy position. However, the globe’s major benchmarks have since pared back sharply.
Craig Erlam, senior market analyst at OANDA Europe, said: “Stock markets are making small losses on Tuesday, giving back earlier gains to trade slightly in the red with US futures also seeing marginal losses.”
“Equities earlier appeared to still be riding the Powell wave in the absence of much else so late in the summer. But that appears to have faded… in Europe.”
Yields on 10-year Treasuries rose 0.021 per cent to 1.305 per cent.
FTSE 100 dips but on track for best month since April
A surge among industrial stocks was not enough to lift the FTSE 100 into positive territory today, but the blue-chip index is on track for its best month since April.
The capital’s premier index dropped 0.53 per cent to 7,110.15 points.
Strong gains among miners, engineers and oil megacaps drove the blue-chip index higher during the first hours of exchanges.
Russ Mould, investment director at AJ Bell, said: “After US Federal Reserve chairman Jerome Powell eased the market’s concern about a tapering of support for the economy at Jackson Hole on Friday, investors have now gone back to fretting about the Covid recovery.”
“This time round it seems to be a combination of the Delta variant hitting China but also potentially the government’s crackdown on companies in the education and technology sectors.”
The mid-cap FTSE 250 fared slightly better than its senior rival, rising 0.15 per cent to 24,094.80 points, while shares on junior market AIM added 0.86 per cent to reach 1,292.24.
The pound lost ground on the greenback, weakening 0.07 per cent to buy $1.375.
Winners and losers
Industrials led the morning’s gains on the blue-chip index, with engineer Weir Group the best performer, climbing 3.20 per cent to 1,741.50p.
Plumber Ferguson rose 2.20 per cent to reach 10,450p, while takeaway delivery company Just Eat climbed 2.09 per cent to 6,541p.
British Airways parent company IAG was the worst performer, sliding 2.72 per cent to 159.08p, while bargain retailer B&M and bank HSBC made up the rest of the top fallers column, down 2.47 per cent and 2.28 per cent respectively.
Around the world
Asian shares posted strong overnight performances as investors shrugged off fears that a rise in Covid cases in the region could hamper the economic recovery.
Japan’s Nikkei soared 1.08 per cent to 28,089.54 points, and Hong Kong’s Hang Seng lifted 0.93 per cent to 25,777,47 points. However, China’s CSI 300 dipped 0.16 per cent to 4,805.61 points.
London’s poor performance was extended into the continent – the pan-European Stoxx 600 was down 0.51 per cent to 470.26 points and the Dax 30 slipped 0.55 per cent to 15,799.24 points.