STOCKS WORLDWIDE SIP AS COVID RECOVERY GETS DIMMER

Most of Wall Street is slipping in midday trading on Tuesday, giving back a slice of the big gains made the past couple weeks, Stan Choe reported for the Associated Press (AP) late on July 7, 2020.

More than three quarters of the stocks in the S&P 500 were dropping, and the index was down 0.1%, as of 11 a.m. Eastern time. Stocks sank more in France, Germany and elsewhere after the European Union’s executive arm said this year’s recession caused by the coronavirus pandemic will be deeper than forecast. It also said next year’s expected rebound could be weaker than expected.

The Dow Jones Industrial Average was down 176 points, or 0.7%, at 26,109, and stocks in Asia also fell following the big rally that swept markets worldwide on Monday. Big technology stocks were an outlier, though, with Microsoft, Apple and other titans pushing higher. Even though most stocks in the S&P 500 were lower, the tech titans’ huge size gives them more sway over the index’s direction, helping it momentarily erase all of its loss of 0.6% from earlier in the morning.

“There is an incredible bifurcation in the market between companies that are technologically adaptive in able to thrive in a virtual economy and those that still relying on the physical economy, so you’re seeing record split between the Nasdaq and the Dow, for instance,” said Ryan Giannotto, director of research at GraniteShares ETFs in New York, Reuters reported.