US: Stocks open lower, extending pullback

[NEW YORK] Wall Street stocks tumbled in opening trading Tuesday, adding to the prior session's retreat on worries about excess valuation and inflation.

Tech shares, which surged during much of the coronavirus pandemic, continued to see pressure as investor interest shifts to sectors expected to thrive in a reopened economy.

"Valuation always matters," Briefing.com analyst Patrick O'Hare said. "It might be disregarded or rationalised to some ridiculous extent for awhile, but ultimately, it always matters." About 35 minutes into trading, the Dow Jones Industrial Average was down 0.8 per cent at 34,475.66.

The broad-based S&P 500 also fell 0.8 per cent to 4,156.48, while the tech-rich Nasdaq Composite Index dropped 0.9 per cent to 13,284.28.

All three major indices fell Monday, with the Dow snapping a three-day streak of records and the Nasdaq sinking 2.6 per cent.

Among individual companies, L Brands fell 3.0 per cent after it announced it would split Bath & Body Works and Victoria's Secret into two companies.

"The spin-off will enable each company to maximise management focus and financial flexibility to thrive in an evolving retail environment and deliver profitable growth," the company said.

AFP