The S&P 500’s string of consecutive record closing highs stopped Tuesday at the number 7.
Weak financials were a drag on the Dow, which fell 208 points, and the S&P 500, which dipped 8 points. But the Nasdaq crept up to another record closing high.
Growth in the massive services sector cooled in June with workers hard to find, according to the Institute for Supply Management.
The survey dropped from a record high the month before, sparking concerns about economic growth and corporate profits.
Nick Colas is co-founder of DataTrek Research.
“If you look at the Treasury, the 10-year Treasury yields are really collapsing and that’s giving some people pause about what could happen in the back half of the year and into 2022. The market’s expecting a lot of robust earnings growth. And if we don’t see it all come through starting in the next two weeks, I think equities will feel that they’re probably a little bit overextended. And today is that first whiff of a growth scare that we’re seeing.”
Oil prices dropped as members of OPEC+ continued to spar. In a rare public feud, Saudi Arabia wants to move slowly in reversing some of the historic production cuts put in place during the height of the health crisis. The United Arab Emirates wants a quicker reversal.
U.S. crude prices fell to more than $73 a barrel. ConocoPhillips was the weakest of the U.S. oil majors, down nearly 4 percent.
Adding to the angst on Wall Street: Chinese regulators ordered Didi Global, China’s version of ride-hailing app Uber, to be taken down from the app store in that country. China’s Cyberspace Administration also announced probes into other Chinese companies with U.S. stock listings.
Didi was knocked down by 22 percent. Alibaba fell roughly 3 percent. Baidu was down more than 5 percent.
The U.S. Department of Defense cancelled a lucrative $10 billion cloud contract that was awarded to Microsoft during the Trump administration. It’s likely the contract could now be split between Microsoft and Amazon. Shares of Microsoft were little changed. Amazon hit an all-time high on the same day Andy Jassy took over from Jeff Bezos as CEO.