Shares drop after the rally due to the sell-offs in Big Tech

Shares fell on speculation that this month’s rally outweighed the prospect of an economic rebound amid a resurgence of coronavirus cases around the world. Treasury bonds fell.

The S&P 500 Index has fallen for a two-month high, led by tech and consumer discretionary companies. Amazon.com Inc. has collapsed, with the online retail giant facing an antitrust complaint from the European Union. Alibaba Group Holding Ltd.’s US deposit receipts plummeted after China tightened control over large internet companies. Boeing Co. jumped on news that US regulators could lift the 737 Max’s grounding as early as next week, while Eli Lilly & Co. recovered when the US granted its antibody therapy a license to l emergency use.

After all the excitement that lifted global equities on Monday and sent the havens into a tailspin, some analysts said the moves may have gone too far, as tough questions remain unanswered. The coronavirus blast still has several hurdles to overcome, and concerns about US fiscal stimulus, the handover of power to President-elect Joe Biden, and rising virus cases are among some of them. Meanwhile, the S&P 500 is trading at 21.5 times the consensus 2021 earnings estimate, putting the benchmark valuations around the highest level since the dot-com era.

“There is still a huge amount of uncertainty out there, and while stocks may continue to climb a wall of concern, the stock market is still subject to the rules of gravity,” said Jonathan Boyar, chief executive of Boyar Value Group. .

China unveiled regulations to eradicate monopolistic practices in the internet sector, seeking to limit the growing influence of companies like Alibaba and Tencent Holdings Ltd. The rules, which brought both stocks down and triggered a broader sell off of Chinese stocks , landed about a week after new financial sector restrictions triggered the shock suspension of Ant Group Co.’s $ 35 billion initial public offering.

Traders will be watching closely on Tuesday for a string of Federal Reserve speakers for clues about the policy after optimistic news about a coronavirus vaccine on Monday sparked a rebound in betting for central bank rate hikes starting in late 2023. Fed Bank of Dallas President Robert Kaplan said “the jury is out of the fourth quarter due to the resurgence of the virus.”

These are some key events coming up:

• Alibaba holds its annual Singles’ Day Wednesday, a global online shopping phenomenon that posted $ 38 billion in revenue last year.
• European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and Federal Reserve President Jerome Powell are among the speakers Thursday at the ECB’s online forum titled “Central Banks in a World on the Move”.
• US CPI data for October is expected on Thursday.
• Finance ministers and Group of 20 central bankers hold an extraordinary meeting on Friday to discuss bolder action to help poor nations struggling to repay their debts.

These are some of the main moves in the markets:

Actions

• The S&P 500 was down 0.3% at 9:57 am New York time.
• The Stoxx Europe 600 index increased by 0.7%.
• The MSCI Asia Pacific index has changed little.

Currencies

• The Bloomberg Dollar Spot Index has been slightly modified.
• The euro was slightly changed to US $ 1.1809.
• The Japanese yen was slightly changed to 105.35 per dollar.

Bonds

• The 10-year Treasury bond yield increased four basis points to 0.96 percent.
• Germany’s 10-year yield increased by two basis points to -0.49 percent.
• Britain’s 10-year yield was up three basis points to 0.403%.

Raw material

• The Bloomberg Commodity Index was up 0.6%.
• West Texas Intermediate Crude Oil rose 1.5% to US $ 40.89 per barrel.
• Gold strengthened 1% to US $ 1,881.09 per ounce.

– With the assistance of Cormac Mullen, Andreea Papuc, Todd White, Cecile Gutscher, Lynn Thomasson, Lu Wang and Vildana Hajric.