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Pfizer shares fall as co to scrap obesity drug
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Tesla, Alphabet shares slide on brokerage downgrades
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Lucid up after agreement with Aston Martin
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Indexes down: Dow 0.1%, S&P 0.32%, Nasdaq 0.81%
(Updated at 1425 P.M. ET/ 1825 GMT)
By Sinéad Carew, Sruthi Shankar and Johann M Cherian
June 26 (Reuters) - Wall Street's three major indexes fell on Monday, led by growth stocks, while investors sought bargains after Russia's aborted weekend mutiny.
The main indexes had see-sawed between red and green as investors digested the implications of the rebellion by Russian mercenaries that raised questions about President Vladimir Putin's future.
Growth stocks weighed the most on the main indexes, with Meta Platforms Inc, Alphabet Inc and Tesla Inc falling sharply.
The S&P 500 value index was up 0.1%, outperforming the benchmark's growth index, which fell 0.7%. Also the small caps Russell 2000 index rose 0.6%.
Last week, U.S. stocks sputtered after a recent rally, with the tech-heavy Nasdaq snapping its eight-week winning streak after Fed Chair Jerome Powell signaled there could be more interest rate hikes ahead.
"Investors are wrestling with the implications of what happened over the weekend. We didn't get a coup but we had a rebellion that turned around," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, Charlotte, North Carolina. "You could only be worried about the uncertainty. You couldn't be optimistic about the result."
But Zaccarelli said investors were checking out underdogs for the year-to-date such as value stocks and small caps.
"Out of favor themes for 2023 are working for today. Maybe in the absence of a real risk on or risk off day you go bargain hunting," he said.
The Dow Jones Industrial Average fell 34.05 points, or 0.1%, to 33,693.38; the S&P 500 lost 13.79 points, or 0.32%, at 4,334.54; and the Nasdaq Composite dropped 109.13 points, or 0.81%, to 13,383.39.
But the S&P 500 energy sector gained 2.0% as oil prices rose while investors balanced concerns about global demand growth against upcoming supply disruptions that could get exacerbated by political instability in Russia.
A slew of economic data including a key inflation gauge, durable goods and University of Michigan's consumer sentiment index is expected this week, as well as Powell's speech that could throw light on Fed's rate hike plans.
Most policymakers see at least two more quarter-point rate increases by the end of this year, though traders expect one more hike in July and see the U.S. central bank holding rates steady through the end of 2023, according to CMEGroup's Fedwatch tool.
Among single stocks, Pfizer Inc shed 3.7% after the drugmaker said it is discontinuing the development of an experimental obesity and diabetes drug due to elevated liver enzymes in patients in clinical studies.
Defense firms including Lockheed Martin, Northrop Grumman Corp were down more than 1%.
Alphabet fell 3.2% after UBS downgraded the stock to "neutral," while Tesla slipped 4.5% after Goldman Sachs cut the electric car maker's rating to "neutral".
Lucid Group rose 3.6% after entering into an agreement with UK's Aston Martin that will give the electric vehicle maker a 3.7% stake in the company.
PacWest added 5.0% after private-equity firm Ares Management said it had acquired a $3.5 billion specialty finance loan portfolio from the lender.
Carnival slumped 9.8% after the cruise operator forecast third-quarter earnings below Wall Street expectations.
(Reporting by Sruthi Shankar and Johann M Cherian in Bengaluru; Editing by Shinjini Ganguli and Richard Chang)
