(Reuters) – The S&P 500 slipped in choppy trading on Tuesday as the risks of reopening the economy too soon overshadowed hopes of a jump-start to a battered global economy, following an easing of virus-led business shutdowns.
FILE PHOTO: The New York Stock Exchange (NYSE) is seen in the financial district of lower Manhattan during the outbreak of the coronavirus disease (COVID-19) in New York City, U.S., April 26, 2020. REUTERS/Jeenah Moon
Among the 11 major sectors, financial stocks, which generally lag when the economic outlook darkens, weighed the most on the S&P 500.
Also dragging the sector lower was a 5.5% fall in BlackRock Inc, after its top shareholder PNC Financial Services Group Inc planned to sell its entire 22% stake in the world’s largest asset manager.
Optimism about an economic recovery and massive stimulus measures have helped the benchmark index climb about 34% from the lows of a pandemic-driven selloff in March.
“There’s an assumption that the worst is behind us, (but) it feels a bit premature to be frank,” said Keith Buchanan, a portfolio manager at GLOBALT in Atlanta.
“We do see accelerating infection in some places, but how that story is written into the far is yet to be seen.”
Wuhan reported its first cluster of coronavirus infections since a lockdown on the city, stoking concerns of a wider resurgence.
Leading U.S. infectious disease expert Anthony Fauci on Tuesday warned Congress that while the federal government is working to help manufacture a vaccine against the new coronavirus, its development “might take some time” to come to market.
According to a report before the hearing, Fauci warned that moving too quickly to ease restrictions on business and social life will put lives at risk from the pandemic and hamper the economic recovery.
Wall Street’s fear gauge slipped for the fourth day running, hitting a ten-week low, even as data showed U.S. consumer prices in April dropped by the most since the Great Recession.
The focus for this week is the retail report for April due on Friday.
At 10:12 a.m. ET, the Dow Jones Industrial Average was up 42.25 points, or 0.17%, at 24,264.24, the S&P 500 was down 6.09 points, or 0.21%, at 2,924.23. The Nasdaq Composite was down 28.27 points, or 0.31%, at 9,164.07.
Among other stocks, Simon Property Group Inc jumped 3.6% as the biggest U.S. mall operator said it would have about half of its more than 200 retail properties in the country open within the next week.
Smaller rival Macerich Co climbed 4.9% as it expected to open a vast majority of its properties by mid-June.
Declining issues outnumbered advancers for a 1.19-to-1 ratio on the NYSE and a 1.35-to-1 ratio on the Nasdaq.
The S&P index recorded seven new 52-week highs and one new low, while the Nasdaq recorded 55 new highs and 12 new lows.
Reporting by Medha Singh and Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta