S&P 500, Nasdaq Fall on Delta Strain Concerns Despite Strong Q2 Reports



Only four of the 11 S&P sub-indices rose early in the day, with real estate and utility stocks leading the way, which is safe bet in times of heightened economic uncertainty.

"The substantial gains in earnings are already embedded in the stock price, mainly because of the favorable comparison with last year," said Rick Meckler of Cherry Lane Investments.

"What worries investors is the return of the coronavirus, which is wreaking havoc on the economy, and the possibility of higher tax rates."

Major US stock indexes have pulled back from record highs amid fears of a slowdown in economic growth and the spread of the delta variant of the coronavirus. Tighter regulation in China has also caused a stir in the global tech sector.

Shares in China's Tencent Holdings Ltd fell 10% in Asia after Chinese state media called online gaming "spiritual opium."

US-traded gaming companies including Activision Blizzard Inc, Electronic Arts Inc, Zinga Inc, and Take-Two Interactive Software Inc were down 2.8-9%.

The Dow Jones index by 17:45 Moscow time rose 0.15% to 34.891.65 points, the S&P 500 index dropped 0.02% to 4.386.15 points, and the Nasdaq fell 0.46% to 14.613.07 points.

 

 

 

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