Wall St falls as higher yields, China data weigh
By Shristi Achar A and Amruta Khandekar
(Reuters) — Wall Street's main indexes fell on Tuesday as higher Treasury yields weighed on some major growth stocks, while downbeat data on services activity in China stoked worries over demand in the world's second largest economy.
The yield on the 10-year Treasury notes climbed to 4.23%, while two-year yield rose to 4.928% in the run-up to more economic data this week.
Major technology-linked stocks such as Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL) lost between 0.4% and 1.2%.
«Investors are grappling with what we consider to be a still relatively weak economic and profit environment for the average corporation,» said Jason Pride, chief of investment strategy and research at Glenmede.
«The recession is definitely delayed within the United States… we are seeing fairly weak economic environments in both China and Europe.»
China's services activity expanded at the slowest pace in eight months in August, a private-sector survey showed, as weak demand continued to dog the world's second-largest economy and stimulus failed to meaningfully revive consumption.
U.S.-listed shares of Chinese companies including PDD Holdings, JD (NASDAQ:JD).com, Baidu (NASDAQ:BIDU) and Alibaba (NYSE:BABA) fell between 0.5% and 2.9%.
The energy sector was a bright spot, up 0.9% tracking higher oil prices after Saudi Arabia and Russia announced a fresh extension to their voluntary supply cuts. [O/R]
The S&P 1500 airlines index lost 2.5%.
U.S. economic data since the Fed's July meeting has added to the impression the economy is cooling without cracking, likely bolstering the case against further interest rate increases.
All three main U.S. stock indexes logged gains in the previous
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