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U.S. stocks fell on Tuesday after Google was hit with a fine from European regulators.
The Nasdaq composite underperformed, falling 0.4 percent shortly after the open, as shares of Google-parent Alphabet fell more than 1 percent in early trade. The EU fined Google a record $2.7 billion, as regulators ruled the company violated antitrust rules.
“Alphabet is what’s weighing on technology stocks,” said Robert Pavlik, chief market strategist at Boston Private. “I find the news about Google incredibly hard to believe. Do they not have other search engines in the EU?”
Technology stocks have been closely watched by Wall Street this year as the sector has outperformed. Entering Tuesday’s session, the sector had gained nearly 20 percent in 2017.
The Dow Jones industrial average slipped approximately 10 points, with 3M contributing the most losses.
The S&P 500 fell 0.15 percent, with telecommunications, utilities and information technology leading decliners.
“Short-term momentum has deteriorated over the past few days, but the impact to the [S&P 500] has been minimal in that it remains solidly above initial support near 2400,” said Katie Stockton, chief technical strategist at BTIG, in a note Tuesday.
“We see this as a testament to the healthy breadth behind the market, which has been helped by rotation on the sector front.”
Investors also turned their attention to Washington as doubts increased about the Senate passing a bill to repeal and replace Obamacare before the July 4 recess.
“If the Senate can conjure up enough votes to pass this, then we might get some more legislation done this year,” said Art Hogan, chief market strategist at Wunderlich Securities. “Barring that, it might be a slog of a summer.”
President Donald Trump has said repeatedly he wants to repeal and replace Obamacare before moving on to other items on his agenda, including tax reform.
In economic news, consumer confidence for June topped expectations, hitting 118.9. Economists polled by Reuters expected a print of 116. Wall Street will also be on the lookout for remarks from key Federal Reserve officials, including Fed Chair Janet Yellen.