BUSINESS US stocks open mostly lower as rally shows fatigue

BUSINESS

US stocks open mostly lower as rally shows fatigue

AFP

21:58, July 07, 2020

Wall Street stocks were mostly down early Tuesday, giving back some of the recent gains in a market that has appeared resilient despite surging US coronavirus cases.

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File photo

About 15 minutes into trading, the Dow Jones Industrial Average was down 0.7 percent at 26,103.78. 

The broad-based S&P 500 shed 0.3 percent to 3,171.12, while the tech-rich Nasdaq Composite Index added 0.2 percent at 10,451.18.

Major US indices gained more than 1.5 percent on Monday, with the Nasdaq finishing at a fresh record, betting that continued stimulus from Washington and the trend of the reopening economy would more than offset rising COVID-19 counts in Texas, Florida and other US states.

But analysts said the early pullback Tuesday suggested the rally was losing steam.

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

Companies in the S&P 500 are projected to suffer an average 43.8 percent drop in profits during a period devastated by coronavirus shutdowns, according to Factset.

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