Stocks drop ahead of tech earnings and renewed mask guidance.
A global sell-off of tech stocks and a new call to wear masks in the United States pushed stocks back to record highs on Tuesday, as investors awaited more positive news from a series of earnings reports owed by investors. US tech giants after markets close.
The S&P 500 was down 1% at midday.
The Centers for Disease Control and Prevention on Tuesday recommended that people vaccinated against the coronavirus resume wearing masks indoors in parts of the country, overturning a decision made just two months ago.
Alphabet, Apple and Microsoft will also provide an update on their financial performance later today. The reports come at a time of Big Tech’s scrutiny, with President Biden signing an executive order earlier this month aimed at increasing competition in the national economy and limiting corporate dominance. The tech-rich Nasdaq Composite Index fell about 2%, its worst drop since mid-May.
Tensions between governments and technology are increasingly global. Chinese stocks plunged again on Tuesday, as the authoritarian state’s crackdown continued on its local tech titans.
Chinese tech conglomerate Tencent fell about 9% after shutting down its WeChat app to new users to “align with all relevant laws and regulations.” The Meituan delivery service fell 18% after the government issued new regulations requiring these services to pay at least minimum wage. Alibaba fell more than 6% in Hong Kong.
Hong Kong’s Hang Seng plunged more than 4%. And the CSI 300 index of stocks listed on continental indices fell more than 3.5%. The Hang Seng has lost more than 14% over the past month.
The Federal Reserve is also holding a two-day meeting starting Tuesday where policymakers are expected to start discussing whether and when to start reducing the emergency central bank bond-buying measures. .
#Stocks #drop #ahead #tech #earnings #renewed #mask #guidance