S&P 500, Dow down in first post-holiday session; Nasdaq

July 5 (Reuters) – The S&P 500 and Dow fell on Tuesday to start the trading week after a three-day weekend following a sharp rally last Friday, as investors await economic data due later this week. The technology-heavy Nasdaq rose.

US stocks have come under relentless selling pressure this year, with the benchmark S&P 500 Index (.SPX) Marking the largest percentage drop in the first half since 1970, as the Federal Reserve turns away from easy money policy by increasing borrowing costs.

Investors await the minutes of the Federal Reserve’s June meeting on Wednesday as they prepare to raise interest rates by another 75 basis points at the end of the month.

Traders are also watching economic data, including the jobs report for June and expected on Friday, and company comments for signs of inflation peaking and economic growth slowing, with another earnings season approaching.

Data showed that new orders for US manufactured goods increased more than expected in May, reflecting that product demand remains strong even as the Federal Reserve seeks to cool the economy. Read more

Separately, business growth across the eurozone slowed further in June and European natural gas prices rose again, raising fears of a recession in the bloc. Read more

“We don’t think we’re going to have a major recession (in the US),” said Jay Hatfield, founder and CEO of Infrastructure Capital Management in New York. “Employment in the United States is very strong. What almost everyone misses…is that Europe’s loss is our gain.”

Record US Treasury yields fell on Tuesday and a major part of the yield curve inverted for the first time in three weeks as economic growth concerns reduced risk appetite and increased demand for safe-haven US debt.

energy stock (.SPNY) It reached its lowest level in five months as recession fears clouded the outlook for oil demand. material sector (.SPLRCM) It was at a low near 1-1/5 years as the slump in metal prices hurt mining stocks.

“Energy and technology are usually traded on a negative correlation and interest rates are going up, so technology is what supports the market here,” Hatfield added.

2:05 p.m. EDT, NASDAQ Composite (nineteenth) It was up 70.85 points, or 0.64%, at 11,198.70, offsetting early losses. Dow Jones Industrial Average (.DJI) It fell 436.62 points, or 1.4%, to 30,660.64 and the Standard & Poor’s 500 (.SPX) It lost 32.77 points, or 0.86%, to 3,792.56 points.

Low issues outnumbered advanced issues on the New York Stock Exchange by 2.37 to 1; On the Nasdaq, the ratio was 1.11 to 1 in favor of declining stocks.

S&P 500 hits new 52-week high and 51 new low; The Nasdaq recorded 11 new highs and 292 new lows.

(covering Echo Wang) in New York. Additional reporting by Amruta Khandekar and Shreyachi Sanyal in Bengaluru Editing by Shonak Dasgupta and Matthew Lewis

Our criteria: Thomson Reuters Trust Principles.