Skip to main content
Canada’s most-awarded newsroom for a reason
Enjoy unlimited digital access
$1.99
per week
for 24 weeks
Canada’s most-awarded newsroom for a reason
$1.99
per week
for 24 weeks
// //

U.S. stocks ended lower on Tuesday, led by declines in the Nasdaq, as investors were cautious before results from top tech and internet names and Wednesday’s Federal Reserve announcement. The TSX ended virtually unchanged.

Shares of Apple Inc, Microsoft Corp and Google parent Alphabet Inc, all set to report earnings after the bell, were down and weighed the most on the Nasdaq and S&P 500 along with Amazon.com Inc, which is expected to report results later this week.

Also, electric-car maker Tesla Inc fell nearly 2% following its results from late on Monday.

Story continues below advertisement

Shares of the heavily weighted tech and internet companies have run up recently and last week regained leadership in the market, putting their results in the spotlight even more.

“Expectations are so high. They’re going to have good numbers ... but we are expecting much more or maybe they will talk down the second half of the year,” said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.

Adding to the cautious tone is the outlook for U.S.-listed Chinese stocks, he said. The shares including Baidu extended losses as fears over more regulations in the mainland persisted.

Caution was also high as the Fed began its two-day meeting, with investors looking for signs on when it intends to begin reining in its massive stimulus program.

Unofficially, the S&P/TSX Composite Index closed up 8.39 points, or 0.04%, at 20,173.35, the Dow Jones Industrial Average fell 101.19 points, or 0.29%, to 35,043.12, the S&P 500 lost 20.6 points, or 0.47%, to 4,401.7 and the Nasdaq Composite dropped 180.14 points, or 1.21%, to 14,660.58

In another sign that investors were in a risk-off mood, defensive sectors such as real estate and utilities were the two best-performing S&P 500 sectors for the day, and U.S. Treasuries prices rose. In late afternoon trading, the U.S. 10-year Treasury yield slid to 1.239% from 1.276% late on Monday. Canadian bond yields were also lower.

The yield on 10-year Treasury Inflation-Protected Securities (TIPS) plunged to a record low of -1.147% for a second straight session as investors bought TIPS on concerns about the prospect of steeper consumer prices going forward. The yield was last at -1.117%.

Story continues below advertisement

“With the increased uncertainty from China and the Delta variant, the markets are taking a breather from last week’s reversal on rates and equity prices,” said Ellis Phifer, managing director of fixed income at Raymond James in Memphis, Tennessee. “Maybe it’s the pause that refreshes.”

The energy sector was the weak spot for the TSX, with a decline of more than 2%.

Intel Corp shares sank 2% after it said its factories would start building Qualcomm chips and laid out a road map to expand its new foundry business.

Reuters, Globe staff

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies