The Nasdaq slipped lower for a second day, adding to a decline of nearly 2% per cent on Friday.
The tech-heavy index fell by as much as 1.9% in early trading before paring losses as the day progressed.
The S&P 500 and Dow also declined, albeit in more muted fashion, as weakness in tech and raw-materials shares was partially offset by gains in telecom and energy companies.
First up, the scoreboard:
- Dow: 21,226.82, -45.15, (-0.21%)
- S&P 500: 2,428.77, -2.89, (-0.12%)
- Nasdaq: 6,173.39, -34.36, (-0.57%)
- US 10-year yield: 2.213%, +0.014
- WTI crude oil: $US46.02, +0.19, +0.41%
1. The tech stock ‘fairy tale’ is heading for a bad ending. The two-day skid in the sector has highlighted the fragility of a tech rally driven largely by a handful of high-flying mega-cap stocks that are more heavily owned by managers of large funds than at any other point in the eight-year bull market.
2. There’s a new biggest bull on Wall Street. Jonathan Golub of RBC Capital Markets is still constructive on stocks given what he describes as a recent pickup in global activity, stronger EPS, and reasonable valuations.
3. Advisers are telling investors to go scorched earth on the company that makes EpiPen. Mylan shareholders are being advised to vote against almost every single board member at the company.
4. One of the world’s largest hedge funds is returning $US8 billion to its investors. Viking Global Investors is returning about a quarter of its capital to investors as its chief investment officer steps down.
5. Bitcoin nearly hits $US3,000 before plunging. The cryptocurrency climbed to an all-time high of $US2,999.97 a coin in overnight action, only to see the price drop to around $US2,666 a coin.