Another afternoon flop for stocks left the Standard & Poor & # 39; s 500 Index with its third consecutive loss on Tuesday.
The market looked like it would win in the morning, after technology stocks recovered from one of their few setbacks this year. But the technology rally lost momentum as the afternoon wore on, and losses in telecom stocks and profits helped consolidate the S & P 500's longest losing streak in nearly four months.
The S & P 500 fell 9.87 points, or 0.4 percent, to 2,629.57. It had risen 0.3 percent in the morning, and marked the second consecutive day that an early rally ended petrifying.
The Dow Jones industrial average lost 109.41, or 0.5 percent, to 24,180.64, and the Nasdaq compound fell 13.15, or 0.2 percent, to 6,762.21. The losers outperformed the winners on the New York Stock Exchange by almost two to one.
The ups and downs of the market have come as investors review the two proposals of Congress to modernize the tax system. The Senate and the House of Representatives are trying to reconcile their respective versions before sending it to President Donald Trump for approval, and investors are trying to discover which industries and companies will win and lose.
After leading the market for most of this year, technology stocks moved into the losers column recently. Technology companies already pay some of the lowest effective tax rates of the S & P 500 companies, so they have less to gain from the proposal.
Technology stocks in the S & P 500 began to falter last week as expectations increased and as investors shifted to companies that would benefit the most from lower rates, such as financial companies. It culminated with a 1.9 percent loss for the S & P 500 technology shares on Monday, the first trading day after the Senate approved its version of the tax review. The Senate proposal to maintain the alternative minimum tax for all companies also hurt technological stocks.
It's a rare setback for the technology industry, which had climbed twice as fast as the S & P 500 in the first 11 months of the year. And that attracted buyers.
Chip makers and internet companies led the market on Tuesday, and technology stocks in the S & P 500 rose 0.2 percent. It was the only sector of the 11 that make up the index to go up, although it had risen to 1.4 percent earlier in the day.
Micron Technology rose $ 1.31, or 3.3 percent, to $ 41.21 for the biggest gains in the S & P 500.
"I do not think this is the beginning of the end of the technology, "said Brian Nick, chief investment strategist at Nuveen. "The technology is going to be backed by very strong profits, which is ultimately what will drive the market next year."
The rest of the market, however, fell on Tuesday. Telecoms shares fell 1.8 percent due to the higher loss among the index sectors. A day before, I had the strongest gains in the market. Public services, industrial companies and retailers were also weak.
Edison International fell $ 10.26, or 12.8 percent, to $ 70 for the biggest loss in the S & P 500. Forest fires are growing outside of Los Angeles, and investors are guessing that the damage could cause losses for the subsidiary of electrical services of Southern California Edison.
In Europe, markets declined modestly as negotiations for the pending departure of the United Kingdom from the European Union continued.
France's CAC 40 fell 0.3 percent and Germany's DAX fell 0.1 percent. The FTSE 100 in London lost 0.2 percent.
In Asia, the Nikkei 225 index in Tokyo fell 0.4 percent, the Hang Seng index in Hong Kong fell 1 percent and Kospi in South Korea gained 0.3 percent.
In the bond market, Treasury yields fell as bond prices rose. The yield on the 10-year Treasury note fell to 2.35 percent from 2.37 percent on Monday night.
On Monday the dollar rose to 112.62 Japanese yen from 112.60 yen. The euro fell to $ 1.1816 from $ 1.1855, and the British pound fell to $ 1.3442 from $ 1.3471.
The reference price of US crude rose 15 cents to settle at $ 57.62 per barrel. Brent crude, the international standard, rose 41 cents to $ 62.86 per barrel in London.
Natural gas fell 7 cents to $ 2.91 per 1,000 cubic feet, heating oil rose 2 cents to $ 1.91 per gallon and wholesale gasoline gained 3 cents to $ 1.72 per gallon.
Gold fell $ 12.80 to settle at $ 1,264.90 per ounce, silver lost 31 cents to $ 16.07 per ounce and copper fell 14 cents to $ 2.95 per pound.
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