Wall Street Falls Despite Tesla Charge

All three major indexes hit record highs at the opening before retreating. The S&P 500 technology index, which has led gains this week, was the biggest drag on the overall benchmark index.

Trading was heavy and volatile in shares of electric-car maker Tesla, which will become on Monday the most valuable company to be ever added to Wall Street's main benchmark index.

The stock was last up 6 percent and hit a record high. Turnover in Tesla shares topped US$120 billion, with volume exceeding 200 million as the stock traded after hours, according to Refinitiv data.

"Tesla is sort of a New Age cult stock. There are people who love the product and who love the stock," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York, New York.

Investors could see further gains in the stock on Monday, but possibly profit-taking after that, he said, adding, "a lot of people bought when the announcement" of the inclusion in the S&P 500 came out.

After markets closed, President Donald Trump signed legislation that would kick Chinese companies off US stock exchanges unless they adhere to American auditing standards, the White House said, giving the Republican one more tool to threaten Beijing with before leaving office next month.

"The Holding Foreign Companies Accountable Act" bars securities of foreign companies from being listed on any US exchange if they have failed to comply with the US Public Accounting Oversight Board's audits for three years in a row.

While it applies to companies from any country, the legislation's sponsors intended it to target Chinese companies listed in the United States, such as Alibaba, tech firm Pinduoduo and oil giant PetroChina.

The Dow Jones Industrial Average fell 0.41 percent, to 30,179, the S&P 500 lost 0.35 percent, to 3,709 and the Nasdaq Composite dropped 0.07 percent, to 12,756. (Reuters)