- Dip-buyers arrived to help the stock market trim losses, but the broader market still saw its first losing day after five up sessions and the Nasdaq (COMP.IND) -1.2% slumped.
- Falling Chinese stocks, amid a government clampdown, soured investors a little on risk as the major averages fell from record highs.
- The S&P (SP500) -0.5% and Dow (DJI) -0.2% closed down and Treasury yields fell, with the 10-year down 4 basis points to 1.24%.
- The Nasdaq Golden Dragon Index (NASDAQ:PGJ), which tracks 98 U.S.-listed Chinese stocks, fell more than 5% and is down about 50% from its February highs.
- EV stocks were particularly hard hit.
- “With China, you just don’t know what’s going to happen tomorrow,” Tim Ghriskey, chief investment strategist at Inverness Counsel, told Bloomberg. “It’s not that we don’t have a regulatory risk in the U.S., but here there is a legal process. In China, it’s at the flick of a switch.”
- The megacaps all closed lower, but also well off lows of the day going into a big batch of postmarket earnings.
- The S&P sectors closed mostly lower, with only defensive sectors posting gains.
- Utilities (NYSEARCA:XLU) was the best performer, while Communication Services (NYSEARCA:XLC) at the bottom.
- Video game stocks weighed on XLC, with Activision Blizzard tumbling as employees plan a walkout over company conditions.
