Banks, tech sector weigh on stocks
Banks, technology and healthcare firms and other companies fell Wednesday, a day after U.S. stock indexes surged. Oil prices hit a threeyear high after President Trump tweeted that the United States will launch missiles at targets in Syria.
Aside from energy companies, stocks were slightly lower most of the day. Banks slipped along with interest rates, while healthcare and technology companies gave up some of the big gains they made Tuesday. Trump said the U.S. will respond to the recent suspected chemical attack in Syria, and Saudi Arabia said it intercepted missiles fired by rebels in Yemen. Fighting in the Middle East could restrict oil supplies and push up prices.
Simona Mocuta, senior economist for State Street Global Advisors, said it’s a challenge for investors to respond to events such as possible strikes in Syria because it’s not clear what the outcomes will be.
The Standard & Poor’s 500 index fell 14.68 points, or 0.6%, to 2,642.19; the previous day, it surged 1.7%. The Dow Jones industrial average slid 218.55 points, or 0.9%, to 24,189.45. The Nasdaq composite fell 25.27 points, or 0.4%, to 7,069.03. But the Russell 2000 index of smaller-company stocks rose 3.36 points, or 0.2%, to 1,546.70, and most stocks on the New York Stock Exchange finished higher.
Facebook rose 0.8% to $166.32 as Chief Executive Mark Zuckerberg testified before Congress for a second day.
Other social media companies, including Snap and Twitter, also rallied over the last two days.
Energy companies rose as benchmark U.S. crude climbed 2% to $66.82 a barrel. Brent crude rose 1.4% to $72.06 a barrel. Oil prices jumped more than 3% on Tuesday as investors got more optimistic about a possible resolution to the U.S.China trade spat.
The yield on the 10-year Treasury note fell to 2.78% from 2.80%. When bond yields fall, it forces down interest rates on mortgages and other kinds of loans, meaning lower profits for banks. JPMorgan Chase shares fell 1.7% to $110.62. Bank of America shares declined 1.9% to $29.90.
Medical and security imaging equipment maker Analogic agreed to be bought by Altaris Capital Partners for $84 a share, or $1.05 billion. That was much less than investors had hoped for, and the stock dropped 13.2% to $83.35.
The dollar fell to 106.95 yen from 107.17 yen. The euro rose to $1.2362 from $1.2361.
Gold rose 1% to $1,360 an ounce. Silver rose 1% to $16.77 an ounce. Copper fell 0.6% to $3.12 a pound.
Wholesale gasoline rose 1.3% to $2.07 a gallon. Heating oil rose 1.4% to $2.09 a gallon. Natural gas rose 0.7% to $2.68 per 1,000 cubic feet.