Tech stocks lead losses as US indices pull back from rally

NYSE Trader worried redBrendan McDermid/Reuters


US stocks were lower on Tuesday with tech stocks leading losses in the Nasdaq and S&P 500 after a strong rally on Monday led investors to profit-taking. 

US and European markets are racing ahead of their real economies, potentially creating bubbles that could pop, China’s banking regulator has warned.  Guo Shuqing, chair of the China Banking and Insurance Regulatory Commission, said US and European markets are racing ahead of their real economies, potentially creating bubbles that could pop. 

Here’s where US indexes stood at the 4:00 p.m. ET close on Monday:

SEC chair nominee Gary Gensler said the agency under his watch would at look ensuring investors get “best execution” for their trades and whether payment for order flow provides that during a virtual confirmation hearing in front of the Senate Banking Committee today. 

Gensler also said the SEC will seek to eliminate fraud and manipulation in crypto markets. 

Several ETF filings made excited investors today. In the latest attempt to launch a bitcoin ETF in the US, the Chicago Board Options Exchange filed an SEC request for approval of VanEck’s bitcoin ETF on Monday. In Canada, Evolve Funds filed a prospectus for an ETF that would track Ether, the world’s second largest cryptocurrency. 

An exchange-traded fund designed to track sentiment on platforms like Reddit, StockTwits, and Twitter will launch on the New York Stock Exchange on Thursday. In a video posted on Twitter on Tuesday, the Barstool Sports founder Dave Portnoy promoted the fund.

Oil prices fell. West Texas Intermediate crude dropped 1.58%, to $US59.68 ($77) per barrel. Brent crude, oil’s international benchmark, declined by 1.65%, to $US62.64 ($80) per barrel.

Gold fell around 0.6%, to $US1,733.40 ($2,223) per ounce.

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