Market Recap: Amazon soared 4.7% after Microsoft’s ‘JEDI’ contract canceled

Market Snapshot

U.S. stocks ended most lower Tuesday, with the Dow Jones Industrial Average and S&P 500 index pulling back from record levels as the Nasdaq rose to a new peak, with financial and energy stocks weakening most as bond yields and oil prices fell.

Investors kept tabs on oil prices, which pulled back after surging to six-year highs when talks by the Organization of the Petroleum Exporting Countries and its allies failed to come to an agreement on a proposal to boost output in coming months.

The $S&P 500 Index (.SPX.US)$closed down 0.2%. The $Dow Jones Industrial Average (.DJI.US)$closed down 0.6%. The $Nasdaq Composite Index (.IXIC.US)$closed up 0.17%.

What to drove the market?

Stocks mostly retreated Tuesday, after investors pushed the market to fresh peaks in recent weeks on a strengthening economy, though supply-chain bottlenecks are seen slowing the recovery.

The Institute for Supply Management on Tuesday said its service sector purchasing managers index fell to 60.1% in June from a record 64% in May. A reading of more than 50% indicates an expansion in activity. The IHS Markit final June services PMI fell to 64.6, down from 70.4 in May.

The results are still "solid," butthe ISM services index's larger-than-expected decline has raised investor concerns over the robustness of the economic recovery, according to Michael Arone, chief investment strategist at State Street Global Advisors's U.S. SPDR business. "It begs the question, are we past the peak from the pandemic in terms of the economy rebounding?" he said in an interview Tuesday.

What stocks to watch

$Amazon (AMZN.US)$
The e-commerce giant saw its stock rising 4.7% to lead Big Tech shares higher despite overall weakness in the stock market. Andy Jassy on Monday, and Jeff Bezos became the executive chairman of the board.

The U.S. Department of Defense a planned 10-year, $10 billion cloud-computing contract known as JEDI that , while launching plans for a new multivendor cloud-computing project that will likely be split between $Microsoft (MSFT.US)$and Amazon.

$Apple (AAPL.US)$
Shares of the technology giant added 1.5% after JPMorgan raised its price target on the stock to $170 from $165 and said to “start buying shares again.”

$Tesla (TSLA.US)$
Tesla shares fell 2.8% despite JPMorgan raising its price target on the automaker Tuesday morning.

$DiDi Global (Delisted) (DIDI.US)$