Stocks traded moderately lower Tuesday morning ahead of quarterly results from some of the most prominent names in the technology sector, with a Chinese regulatory crackdown threatening the investing mood on Wall Street.

The developments in Asia come as investors are also waiting for economic reports this week, including second quarter GDP, and a policy update from the Federal Reserve on Wednesday.

How are stock benchmarks trading?

The Dow Jones Industrial Average
DJIA,
-0.34%

dropped 214.97 points, or 0.6%, to 34,929.34.

The S&P 500
SPX,
-0.53%

was down 20.88 points, or 0.5%, at 4,401.42.

The Nasdaq Composite
COMP,
-1.31%

declined 42.55 points, or 0.3%, to 14,798.17.

On Monday, major benchmarks closed at record highs for a second straight session. The Dow and the S&P 500 each rose 0.2%, and the Nasdaq Composite inched higher to also set a fresh record.

What’s driving the market?

A multiday win streak for the S&P 500 index and the Dow were in jeopardy Tuesday as investors worried about a selloff in Hong Kong’s Hang Seng Index, which has put pressure on risk assets across the globe.

The Hang Seng HK:HSI ended 4.2% lower in Asian overnight trade, marking its second consecutive drop of more than 4%, amid China’s regulatory crackdown on technology stocks.

Meituan
3690,
-17.66%

shares dived after China published rules requiring online food platforms to pay minimum wage, but the selling was broad-based, with technology giants Tencent
700,
-8.98%

and Alibaba
9988,
-6.35%

BABA,
-3.65%

each seeing sharp declines.

Some investors fear that the selling in Asia may dim the shine of a strong U.S. corporate earnings reporting season thus far.

“This crackdown on private businesses from China is significantly denting market sentiment despite a better-than-expected earnings season so far,” said Pierre Veyret, technical analyst at ActivTrades.

See: How China’s stock-market meltdown puts U.S. investors at risk

Meanwhile, the Federal Reserve kicks off its two-day policy meeting.

In U.S. economic data, orders for durable goods rose 0.8% in June, well below the 2% rise expected by economists. May orders, however, were revised to show a 3.2% rise versus an initial estimate of 2.3%.

The S&P CoreLogic Case-Shiller Home Price Index showed a 16.6% year-over-year rise in May, up from the previous record of 14.8% set last month. The separate 20-city index, which gauges home prices across a group of major cities across the country, increased over the past year by 17% in May, up from 15% in the prior month.

The Conference Board’s consumer confidence index for July is due at 10 a.m. Eastern.

After the close Tuesday, U.S. tech giants Alphabet GOOG, Apple AAPL and Microsoft MSFT report quarterly results.

Which companies are in focus?

Tesla Inc. TSLA shares fell 0.4% after the electric vehicle maker late Monday reported a surprisingly strong profit.

3M CoMMM said Tuesday it had net income of $1.524 billion, or $2.59 a share, in the second quarter, up from $1.306 billion, or $2.25 a share, in the year-earlier period. Shares fell 1.7%.

Shares of General Electric Co.
GE,
+1.47%

rose 3%, after the industrial conglomerate reported second-quarter profit and revenue that beat expectations, and surprisingly generated positive free cash flow.

Corning Inc.
GLW,
-2.05%

shares were down 2.7% after the maker of optical technologies posted better-than-expected revenue and earnings for its second quarter. 

Centene Corp. 
CNC,
-3.18%

posted better-than-expected adjusted second-quarter profit Tuesday and offered guidance that was above consensus. Shares fell 3.5%.

Shares of United Parcel Service Inc. UPS fell after the package delivery giant reported second-quarter profit and revenue that beat expectations, even as the U.S. domestic business came up short of revenue forecasts.

What are other markets doing?

The yield on the 10-year Treasury note
TMUBMUSD10Y,
1.248%

fell 3.9 basis points to 1.237%. Yields and debt prices move in opposite directions.

The ICE U.S. Dollar Index
DXY,
-0.06%
,
a measure of the currency against a basket of six major rivals, was down 0.2%.

Oil futures edged lower, with the U.S. benchmark
CL00,
+0.10%

up 0.2%, while gold futures
GC00,
-0.06%

edged up 0.2% to trade back above $1,800 an ounce.

In European equities, the Stoxx 600 Europe index
SXXP,
-0.64%

fell 0.5% and London’s FTSE 100
UKX,
-0.41%

was down 0.4%.

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