Stocks falter a day after biggest drop since May

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Healthcare companies have made some of the biggest gains. Johnson & Johnson rose 0.7% after reporting that a booster of its unique coronavirus vaccine provides a stronger immune response months after people received a first dose.

Tech companies also made gains in a reversal from Monday when the industry collapsed. A mix of industrials and financials fell sharply.

The 10-year Treasury yield held steady at 1.31%.

European markets were up and Asian markets mostly rose. Chinese markets have remained closed for a holiday.

The market liquidation on Monday was prompted in part by concerns about heavily indebted Chinese real estate developers and the damage they could cause if they default and spill over into the markets. This has added to a wide range of concerns hanging over investors, including the highly contagious delta variant as well as higher prices squeezing businesses and consumers.

Wall Street is also assessing the impact of the slowdown in the recovery on Federal Reserve policies that have helped support the market and the economy. The central bank will issue a policy statement on Wednesday, which will be closely watched for any signals on how the Fed will ultimately cut its bond purchases that have helped keep interest rates low.

Several companies are making solid gains after giving investors encouraging financial updates. Rideshare company Uber jumped 9.3% after telling investors it could post adjusted earnings this quarter. Equipment rental provider Herc Holdings rose 5.6% after a strong long-term growth forecast.

Supply chain issues, which have plagued a wide range of industries, have weighed on several companies. Homebuilder Lennar slipped 1.7% after third-quarter home deliveries fell short of analysts’ expectations due to supply chain issues. KAR Auction Services fell 0.4% after withdrawing its financial guidance for the year due to computer chip shortages that hurt the auto industry.

Universal Music jumped 38% when it debuted on the Amsterdam Stock Exchange.

(Copyright 2021 by The Associated Press. All rights reserved.)


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