* Alphabet falls after record EU antitrust fine
* Yellen to participate in a discussion at 1 p.m. ET
* GM slips after cutting 2017 sales forecast
* Indexes down: Dow 0.12 pct, S&P 0.20 pct, Nasdaq 0.45 pct
(Updates to open)
By Tanya Agrawal
June 27 (Reuters) – Wall Street was pulled lower by a
selloff in technology shares at the open on Tuesday, while
investors awaited clues on interest rate hikes from Federal
Reserve Chair Janet Yellen’s talk in London.
The technology index fell 0.7 percent due to a
drop in the shares of Apple, Microsoft and
Alphabet fell 1.2 percent to $960.55 after EU antitrust
regulators hit the tech giant with a record $2.7 billion fine.
Since the beginning of the year, the tech index has jumped
about 19 percent, making it the biggest force behind the S&P’s
However, the sector has come under pressure of late over
concerns about lofty valuations. To make matters worse,
investors are also shifting to high-dividend paying defensive
sectors such as utilities in a rising interest rate environment.
“The indices continue to hover near the very high end of the
recent ranges, suggesting this week’s end-of-the-quarter window
dressing is likely to see more sector rotation,” Peter Cardillo,
chief market economist at First Standard Financial, wrote in a
“The broadening out of the markets, we believe, is essential
for the markets to escape a near-term correction.”
Yellen is scheduled to take part in a discussion on global
economic issues in London at 1 p.m. ET (1700 GMT). Investors
expect Yellen to offer more insight into the state of the U.S.
economy, which would support the Fed’s forecast of a rate hike
Fed officials have signaled that they would look through a
slowdown in inflation and continue on their current path for
hikes. But investors are skeptical and market pricing shows only
a 40 percent chance of a rate hike at the Fed’s December
At 9:38 a.m. ET, the Dow Jones Industrial Average was
down 25.84 points, or 0.12 percent, at 21,383.71 and the S&P 500
was down 5.01 points, or 0.20 percent, at 2,434.06.
The Nasdaq Composite was down 28.06 points, or 0.45
percent, at 6,219.09.
Seven of the 11 major S&P 500 sectors were lower, with the
telecommunications index’s 1.16 percent fall leading
Sprint rose 2.2 percent to $8.20 after the
fourth-largest U.S. wireless service provider was said to be in
talks with Charter Communications Inc and Comcast Corp
about a wireless partnership. Comcast and Charter were
down about 0.7 percent.
T-Mobile was down 3.4 percent at $61.06 after
Reuters reported that Sprint had put its merger talks with the
company on hold.
General Motors slipped 0.6 percent to $34.30 after
the automaker lowered its outlook for new sales in 2017. Fiat
Chrysler fell 1.2 percent, while Ford was off 0.5
Advancing issues outnumbered decliners on the NYSE by 1,267
to 1,200. On the Nasdaq, 1,316 issues fell and 912 advanced.
(Reporting by Tanya Agrawal; Editing by Anil D’Silva)