USA stocks drop amid coronavirus concerns

Andrew Cummings
July 8, 2020

After boosting the Nasdaq to a record high on Monday, tech stocks faltered Tuesday as Amazon stock dropped 1.86 percent and Microsoft fell 1.16 percent.

During the Independence Day weekend, several states reported a record increase in new infections, with Florida surpassing the highest daily tally reported by any European country during the peak of the outbreak. Travel-related stocks, which were among the hardest hit during lockdowns, also fell.

"There's some signs of improvement in economic activity and there's concerns about rising cases in particular states".

Michael Antonelli, market strategist at Baird in Milwaukee, said there were a few factors at play.

The broad S&P 500 Index (SPY) of large-cap stocks declined 1.1% to close at 3,145.37.

Nine of the 11 primary S&P 500 sectors traded on a downbeat note, with energy and utilities down 1.6 and 1.2 percent in morning trading, the two worst-performing groups.

Wall Street's major indexes climbed on Monday as data showing unexpected growth in the U.S. services sector last month and optimism over China's economic revival helped investors look past a surge in new cases of Covid-19 at home.

The Dow Jones Industrials dropped 396.85 points, or 1.5%, to end Tuesday at 25,890.18.

U.S. stocks have risen recently, with the S&P 500 registering a fifth straight session of gains on Monday, despite rising new coronavirus cases in the United States as a slew of upbeat data for June bolstered views that an economic recovery is under way.

The Nasdaq composite lost 89.76 points, or 0.9%, to 10,343.89.

Walmart Inc jumped 4.3% after a report that the retailer is close to launching its membership program, a direct competitor for's Prime service.

On the positive side, the US government awarded drugmaker Novavax a $1.6-billion contract to develop a coronavirus vaccine, the biggest amount yet granted under the White House's "Operation Warp Speed".

Investors are beginning to focus on the upcoming second-quarter earnings period, which begins in earnest next week.

Declining issues outnumbered advancing ones on the NYSE by a 2.26-to-1 ratio; on Nasdaq, a 1.97-to-1 ratio favored decliners.

Technology shares were weak in pre-market trading a day after the NASDAQ Composite vaulted higher to an all-time high.

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