NEW YORK, New York - U.S. stocks were under pressure Tuesday, just a day after all the major indices hit new all-time highs.
Technology stocks bore the brunt of the selling. The rebound in the U.S. economy, more rapid than anticipated in light of the prolonged pandemic has surprised to the upside, however much of the growth has come off an extraordinarily low base and will not continue into the future.
"Growth has peaked, the economy will slow a bit in the second half of this year, then much more noticeably in the first half of 2022 as fiscal support fades," Mark Zandi, Chief Economist at Moody's Analytics told CNBC Tuesday.
"The contours of growth are going to be shaped largely by fiscal policy over the next 18 months. The tailwind just blows less strongly, and may stop altogether by this time next year," he said.
At the close on Tuesday, the Nasdaq Composite had retrieved some of its earlier losses but still finished down 180.14 points or 1.21 percent at 14,660.58.
The Standard and Poor's 500 fell 20.81 points or 0.47 p[recent to 4,401.49.
The Dow Jones index was the least impacted, declining 85.79 points or 0.24 percent to 35,058.52.
The U.S. dollar was mixed Tuesday. The euro gained to .1819. The British pound strengthened to 1.3877. The Japanese yen jumped to 109.73. The Swiss franc firmed to 0.9143.
The Canadian dollar weakened to 1.2598. The Australian dollar inched up to 0.7360. The New Zealand dollar was unchanged at 0.6959.
In Europe, the German Dax fell 0.64 percent. The Paris-based CAC 40 declined 0.71 percent.
London's FTSE 100 retreated 0.42 percent.
On Asian markets, Hong Kong's Hang Seng tumbled another 1,153.64 points or 4.40 percent to 25,038.68.
In China, the technology sector again was hardest hit as the Chinese government cracks down in a burst of regulatory reform. The Shanghai Composite lost 86.26 points or 2.49 percent to 3,381.18.
"The market seems to be uncertain whether there will be more policy changes for fintech, social media platforms, delivery platforms, and ride-hailing platforms," Iris Pang, chief economist for Greater China at ING told Reuters Thomson Tuesday.
"Each has their own issue and faces different regulatory actions, so the market is looking for 'which technology subsector will be next?'"
In Australia, it was another record-breaking day, with a major index mirroring Wall Street. The benchmark S&P/ASX200 rose 37.1 points 0.50 percent to reach a new all-time closing high of 7431.4 points.
The Australian All Ordinaries climbed 33.50 points or 0.44 percent to 7,704.00.
In Tokyo, the Nikkei 225 jumped 136.93 points or 0.49 percent to 27,970.22.