The Dow Jones Industrial Average fell sharply towards the close Tuesday, as technology companies surrendered gains and energy sectors were driven down by plunging oil prices on concern that an Iran nuclear deal will increase global oil supply.
The S&P 500 fell 0.89%, the Dow Jones Industrial Average fell 0.78%, or 267 points, and Nasdaq Composite fell 0.57%.
Technology battled to cling onto gains as fears that the shift from growth to value still has a long way to go held gains in line.
“While there are some minor technical indicators implying the value/growth ratio may be extended / overbought on a short-term basis, we see more room ahead for relative outperformance in value,” Dan Wantrobski, associate director of research at Janney Montgomery Scott wrote in a note.
Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB), Google-parent Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) and Amazon.com (NASDAQ:AMZN) were below the flatline.
Apple drew some harsh criticism as well. According to the New York Times, the internet giant violated security by keeping data of its Chinese customers on computer servers owned by a Chinese government-controlled company. The corporation refuted the allegations made in the article. “In China or everywhere else we operate, we never jeopardized the security of our consumers or their data.”
Tesla (NASDAQ:TSLA) has dismissed allegations that well-known short seller Michael Burry has placed a $534 million wager against the company.
Oil prices fell on expectations of a flood of Iranian production despite expectations that a nuclear agreement will be signed on Wednesday, making energy the largest loser. However, a Russian diplomat underlined that while substantial progress had been achieved in the Iranian nuclear discussions, no big breakthrough had occurred.
As Covid-19 constraints continue to lessen, the reopening trade — positive wagers on equities connected to the development of the economic reopening – remains popular, shrugging off the broader market woes.
Furthermore, Treasury Secretary Janet Yellen advocated a change of the corporate tax system to support President Joe Biden’s infrastructure plan, putting the president’s fiscal agenda back in the forefront.