US STOCKS-Tech sell-off weighs on Wall St as Powell warns on recovery

  • Reuters
  • Stock Market News
US STOCKS-Tech sell-off weighs on Wall St as Powell warns on recovery

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* Powell says economic recovery far from complete

* Fiscal stimulus talks to continue on Tuesday

* BioNTech jumps on rolling EU review of vaccine candidate

* Indexes: Dow up 0.10%, S&P off 0.06%, Nasdaq down 0.26%

(Updates to early afternoon)

By Devik Jain and Sagarika Jaisinghani

Oct 6 (Reuters) - The S&P 500 and the Nasdaq retreated on Tuesday as Federal Reserve Chair Jerome Powell warned the U.S. economic recovery remained far from complete, with a selloff in some of the biggest technology companies also weighing on sentiment.

The domestic rebound could still slip into a downward spiral if the coronavirus is not effectively controlled and growth sustained, Powell said. are worried about what the Fed knows that we don't know," said John Augustine, chief investment officer at Huntington National Bank in Columbus, Ohio.

"The things that are obvious to us are that small businesses are closing and unemployment remains high in the services sector. The Fed aggressively wants to address both of those with more fiscal stimulus."

Comments from officials that a stimulus deal was still possible had lifted the three main stock indexes on Monday, helping them recoup losses from last week that were sparked by news that President Donald Trump had contracted COVID-19.

Trump said on Tuesday he felt "real good" upon returning to the White House after a three-day hospital stay where he received an experimental treatment for the disease. of the 11 major S&P sectors were up, with the battered energy index .SPNY tracking a 2% jump in oil prices. O/R

A rotation into value-linked sectors .IVX such as industrials .SPLRCI helped boost the blue-chip Dow, but the Nasdaq slipped further away from record highs following a dip in shares of heavyweight technology mega-caps. Inc AMZN.O , Apple Inc AAPL.O , Facebook Inc FB.O and Google-owner Alphabet Inc GOOGL.O fell between 0.8% and 1.6% after news about a U.S. House of Representatives' antitrust report containing a "thinly veiled call to break up" the companies. in their share prices led the S&P 500 growth index .IGX down 0.4%.

"When you're in bubble territory with higher volatility, the market is very much driven by sentiment," said Matt Hanna, portfolio manager at Summit Global Investments.

"The sentiment has shifted a little bit, it's not nearly as bullish as it was just a couple months ago."

At 12:37 p.m. ET, the Dow Jones Industrial Average .DJI was up 0.10%, the S&P 500 .SPX was down 0.06%, and the Nasdaq Composite .IXIC was down 0.26%.

A 1.2% jump helped the S&P banking subindex .SPXBK outperform the benchmark index as U.S. long-dated Treasury yields climbed to four-month peaks. US/

Boeing (NYSE: BA ) Co BA.N fell 3.0% after the planemaker cut its rolling 20-year forecast for airplane demand due to the fallout from the COVID-19 pandemic. shares of BioNTech BNTX.O jumped 8.0% after the European health regulator said it had started a real-time review of the COVID-19 vaccine being developed by the German biotech firm and U.S. drugmaker Pfizer Inc (NYSE: PFE ) PFE.N . Pfizer's shares dipped 0.1%. of audio device makers Sonos Inc SONO.O and Logitech LOGN.S fell 6.8% and 5.1%, respectively, after their speakers were removed from Apple's online stores. issues outnumbered decliners almost 2-to-1 on the NYSE and the Nasdaq.

The S&P index recorded 25 new 52-week highs and no new low, while the Nasdaq recorded 97 new highs and nine new lows.

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