* Facing revolt, Senate Republicans delay vote on bill
* Alphabet falls after record EU antitrust fine
* Consumer confidence rises more than expected in June
* Indexes down: Dow 0.15 pct, S&P 0.40 pct, Nasdaq 1.04 pct
(Updates to late afternoon)
By Lewis Krauskopf
June 27 (Reuters) – Wall Street dropped on Tuesday as big
tech names weighed and losses steepened after a healthcare bill
was delayed in the U.S. Senate, raising fresh questions about
President Trump’s domestic agenda.
Major indexes fell to session lows after U.S. Senate
Republican leader Mitch McConnell decided to put off a planned
vote on a bill to dismantle the Affordable Care Act until after
the Senate’s July 4 recess.
The healthcare legislation, which has encountered resistance
from several Republicans, is the first plank of Trump’s domestic
policy agenda, with investors eager for him to move onto his
other plans including tax cuts, infrastructure spending and
Promises for such domestic polices helped fuel a 13.5
percent rise for the benchmark S&P 500 since Trump’s Nov 8
“The market likes certainty, and now there’s uncertainty,”
said Peter Costa, president of trading firm Empire Executions in
New York. “What is this going to look like when this gets out of
the next iteration? That uncertainty I think is just having
people pause a little bit.”
“I also think that when the market gets to certain levels,
any type of uncertainty, especially in anything that has to do
with the administration, will have an adverse effect,” Costa
The Dow Jones Industrial Average fell 33.16 points,
or 0.15 percent, to 21,376.39, the S&P 500 lost 9.69
points, or 0.40 percent, to 2,429.38 and the Nasdaq Composite
dropped 65.14 points, or 1.04 percent, to 6,182.01.
Big tech names weighed most heavily on the S&P 500. Google
parent Alphabet fell 1.8 percent after EU antitrust
regulators hit the tech giant with a record $2.7 billion fine.
The tech sector, which has led the market’s gains
this year, pulled back 1.1 percent.
The healthcare sector weakened after news of the
vote delay, and was off 0.5 percent.
Financials were the best performing group, rising
Data showed consumer confidence for June rose more than
expected, which could bolster the Fed’s case for another rate
hike this year.
Philadelphia Fed President Patrick Harker said the Fed
rightly plans to raise rates once more this year, given recent
inflation weakness is likely temporary.
U.S. Federal Reserve Chair Janet Yellen said she does not
believe that there will be a run on the banking system at least
as long as she lives.
Investors are gearing up for second-quarter corporate
earnings season, after a strong first quarter.
“On an earnings basis, the market appears to be fully valued
and we need to see fiscal policy, tax and regulatory reform, to
drive GDP growth and then stock prices,” said Ernie Cecilia,
chief investment officer of Bryn Mawr Trust in Bryn Mawr,
Declining issues outnumbered advancing ones on the NYSE by a
1.37-to-1 ratio; on Nasdaq, a 1.43-to-1 ratio favored decliners.
(Additional reporting by Tanya Agrawal in Bengaluru; Editing by