US stocks close lower, ending Nasdaq streak with 2.1% fall

NEW YORK (AFP) - The Nasdaq's six-day winning streak ended on Tuesday (May 12) as US stocks pulled back after a top government scientist warned against ending the coronavirus shutdowns and reopening the economy too quickly.

The Dow Jones Industrial Average finished down 1.9 per cent, or more than 450 points, at 23,764.78.

The broad-based S&P 500 fell 2.1 per cent to 2,870.12, and, after rising over the last six days, the tech-rich Nasdaq Composite Index shed 2.1 per cent to end at 9,002.55.

After a bruising March as major parts of the US economy shuttered to combat the coronavirus, stocks have risen steadily in anticipation of the relaunching of the economy and the boost from unprecedented US stimulus.

Maris Ogg of Tower Bridge Advisors cited "buyer exhaustion" as well as concerns about high equity valuations as drags on the market.

She also said market sentiment was likely dented by congressional testimony from respected infectious disease expert Anthony Fauci who warned about reopening the economy too fast.

"There is a real risk that you will trigger an outbreak that you may not be able to control," Fauci said, warning that would not only cost lives, "but could even set you back on the road to trying to get economic recovery."

Grubhub surged 29 per cent following reports that ride-hailing company Uber wants to buy the food delivery company. Uber rose 2.3 per cent.

PNC Financial Services fell 2.1 per cent after announcing it will sell its 22.4 per cent stake in financial management giant BlackRock, which dropped 8 per cent.