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S&P 500 ends see-saw session lower as Pelosi visits Taiwan

Stock Markets Aug 02, 2022 07:37PM ET
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2/2 © Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 27, 2022. REUTERS/Brendan McDermid 2/2

By Noel Randewich and Devik Jain

(Reuters) - Wall Street ended lower after a choppy session on Tuesday, with geopolitical tensions flaring after U.S. House of Representatives Speaker Nancy Pelosi visited Taiwan.

Pelosi said her trip demonstrated American solidarity with the Chinese-claimed self-ruled island, but China condemned that first such visit in 25 years as a threat to peace and stability.

Heavy hitters Microsoft (NASDAQ:MSFT) and Visa (NYSE:V) lost 1.1% and 2.4% respectively, weighing on the S&P 500. All 11 S&P 500 sector indexes lost ground, led lower by real estate, which lost 1.3%. Financials dipped 1.1%.

Shares of chipmakers heavily exposed to China were mixed. Advanced Micro Devices (NASDAQ:AMD) rallied 2.6% ahead of its quarterly report after the bell.

Industrial bellwether Caterpillar (NYSE:CAT) tumbled 5.8% after warning of a bigger drop in demand for its excavators in property crisis-hit China, piling more pain on the industrial bellwether grappling with supply-chain disruptions.

Financial markets have been roiled in recent months by the Ukraine war, soaring inflation and tightening financial conditions.

U.S. job openings in June fell by the most in just over two years, as demand for workers eased in the retail and wholesale trade industries. Overall the labor market remained tight.

Since the U.S. Federal Reserve raised interest rates by 75 basis points in July, investors have been speculating about whether the central bank's largest hikes are behind it.

"The market has to get really comfortable that they have fully baked in all the Fed's rate hikes, and I think that remains an open question," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle. "The challenges and supply constraints aren't necessarily done. They aren't done and gone yet."

Shares of U.S. defense companies Raytheon Technologies (NYSE:RTX) Corp, Lockheed Martin Corp (NYSE:LMT), Northrop Grumman Corp (NYSE:NOC) and L3Harris Technologies (NYSE:LHX) Inc rallied for much of the session, ending with gains between 0.5% and 2.3%. The United States is Taiwan's main supporter and arms supplier.

The S&P 500 declined 0.66% to end the session at 4,091.32 points.

The Nasdaq declined 0.16% to 12,348.76 points, while Dow Jones Industrial Average declined 1.23% to 32,396.30 points.

Volume on U.S. exchanges was relatively heavy, with 11.2 billion shares traded, compared to an average of 10.8 billion shares over the previous 20 sessions.

The CBOE volatility index, also known as Wall Street's fear gauge, eased from the day's high of 24.68 points.

Graphic: Wall Street trading, https://fingfx.thomsonreuters.com/gfx/mkt/byvrjyodrve/SPX_by_marketcap.png

A largely upbeat second-quarter reporting season has supported markets recently, with the benchmark S&P 500 index up about 12% from lows hit in mid-June.

Uber Technologies (NYSE:UBER) Inc jumped almost 19% after the ride-hailing firm reported positive quarterly cash flow for the first time ever and forecast upbeat third-quarter operating profit.

The most traded stock in the S&P 500 was Tesla (NASDAQ:TSLA) Inc, with $28.7 billion worth of shares exchanged during the session. Its shares rose 1.1% after Citigroup (NYSE:C) hiked its price target on the electric car maker.

Pinterest (NYSE:PINS) Inc surged over 11% after activist investor Elliott Investment Management became the largest shareholder of the digital pin-board firm.

Declining stocks outnumbered rising ones within the S&P 500 by a 3.1-to-one ratio.

The S&P 500 posted 2 new highs and 30 new lows; the Nasdaq recorded 40 new highs and 73 new lows.

S&P 500 ends see-saw session lower as Pelosi visits Taiwan
 

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Comments (37)
Jamie An
Jamie An Aug 02, 2022 10:05PM ET
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China and Xi understand now, US is the greatest one .
Kerry Ditto
Kerry Ditto Aug 02, 2022 8:34PM ET
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Media propaganda saying Pelosi visit to Taiwan was something to do with market decline is outrageous. It is nothing to do with market action. It was primarly Fed members' hawkish talk today, which was also meaninglessly misguided. Fed Powell has the power to do whatever necessary. Powell clearly indicated slowing down the rate hike pace would be necessary. Key thing is that inlation was peaked out. From here on the economic growth stability is the main concern, so Fed needs to lower the rate right now starting in September.
jason xx
jason xx Aug 02, 2022 7:14PM ET
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All traitors and cowards are on notice. Sweet Sweet Freedom will be defended to the last man and the last bullet you putin loving s c. um
Brad Albright
Brad Albright Aug 02, 2022 7:14PM ET
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What line is that from? Wasn't it Clint Eastwood?
Jamie An
Jamie An Aug 02, 2022 6:23PM ET
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Market sliding not because US and China tention but because market's misunderstanding early rally in last week
Marco cuevas
Marco cuevas Aug 02, 2022 3:16PM ET
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Fake financial media Reuters trying to get the algos riled up..blatant MA iphlation by fake media outlets at the beck and call of their ,asters...BIG MONEY E WALL STREET...sell the fear camlaign.
jason xx
jason xx Aug 02, 2022 3:16PM ET
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How much did you lose? Sounds like a lot?
David Beckham
David Beckham Aug 02, 2022 2:20PM ET
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China is garbage don’t trust the headline since they won’t do anything
First Last
First Last Aug 02, 2022 2:20PM ET
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And if the CCP will do something, it will do it regardless of whether she visits or not.  The CCP has a long history of being triggered snowflakes.
jason xx
jason xx Aug 02, 2022 2:20PM ET
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I'll be dam ed if a bunch of glorified laundry men are going to stop a United States CO equal head of government from going wherever she wants to go.
William Smith
William Smith Aug 02, 2022 2:02PM ET
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With the pair of id (iot) s in the WH China can do whatever it wants unfortunately. When China takes over Taiwan and controls 75% of the worlds chips, watch out. They can shut down our electric grid, our water systems, refineries, pipelines. food chains and in fact our entire country. Just a fact, like it or not.
Show previous replies (7)
Tre Hsi
Tre Hsi Aug 02, 2022 2:02PM ET
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William Smith  "Neither Xi, Putin or Kim showed any aggression towards anyone when Trump was president"  -- anyone believes that should be introduced to my Nigerian friend who has a great investment opportunity, all you have to do is to give him your bank account details and he promises to double your money in 2 weeks
Tre Hsi
Tre Hsi Aug 02, 2022 2:02PM ET
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Ken Roth  "They all laughed at him during his UN speech."  -- yes, they literally laughed at him, out loud
jason xx
jason xx Aug 02, 2022 2:02PM ET
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Listen to this defeatist appeasement pu. ssy OP. How can you live like that you are an American for christ sake. Show a little backbone.
jason xx
jason xx Aug 02, 2022 2:02PM ET
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Seriously the guy is literally the worst head of state in all of human history from the Pharaoh's to Biden there is no one worse then trump.
jason xx
jason xx Aug 02, 2022 2:02PM ET
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No but Kim said nice things about him according to chump trump
Ronald Warren
Ronald Warren Aug 02, 2022 1:36PM ET
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Finally figured it out Brad! You are a Kenite! Decended of your father. *******!
Brad Albright
Brad Albright Aug 02, 2022 1:36PM ET
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It is true, I am descended from my father. You have exposed me. Drats!
First Last
First Last Aug 02, 2022 1:36PM ET
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Brad Albright   Sometimes they say things that are true.  Give you a spark of hope, then they disappoint you again.
Marco cuevas
Marco cuevas Aug 02, 2022 1:31PM ET
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Caterpillaweighs on google, amazon, tezla? HoW!!! Greedy Wallstreet CA t help themselves they have bills to pay time to sell THE FEAR!!!
jason xx
jason xx Aug 02, 2022 1:31PM ET
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Ya to bad Clinton didn't start them earlier
First Last
First Last Aug 02, 2022 1:27PM ET
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Carlos:  Drone strikes against jihadists were started Geoge W. Bush in 2002
 
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