Wall Street falls on growth worries, Chinese tech crackdown

July 8 (Reuters) – Wall Street’s main indexes fell on Thursday as the spread of the COVID-19 Delta variant cast doubts over an economic recovery, while a rout in Chinese tech stocks appeared to have spilled across markets.

Investors globally turned wary of risk. Equities fell and bond prices rallied on worries about Beijing’s crackdown on foreign-listed Chinese firms and a sustained global economic recovery.

Stocks that led much of Wall Street’s rally this year and those that stand to benefit the most from an economic rebound were under pressure, with cyclical players including financials (.SPSY) and materials (.SPLRCM) leading declines among the 11 major S&P 500 sectors.

The S&P 500 banks (.SPXBK) fell 1.0%, tracking a fall in the 10-year Treasury yield to 1.25%.

The FAANG group, whose value rests heavily on future earnings, dropped between 0.7% and 1.3%. It had sent the Nasdaq and S&P 500 to record highs in the previous session.

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Source: Reuters, Ambar Warrick, Devik Jain