Investors Turn Cautious After Record Highs

S&P 500 sees first loss in four days
By Newser Editors and Wire Services
Posted Dec 29, 2020 3:45 PM CST
Stock Pull Back From Record Highs
The New York Stock Exchange is seen in New York, Monday, Nov. 23, 2020.   (AP Photo/Seth Wenig)

Stocks gave up an early gain and closed modestly lower on Wall Street, giving the S&P 500 is first loss in four days. The 0.2% fall Tuesday came a day after major indexes had notched their latest all-time highs. The market had started the day higher after President Trump signed into law the $900 billion coronavirus economic relief package. Small-company stocks fell more than the rest of the market. But even with its 1.8% loss Tuesday, the Russell 2000 index of smaller companies is still on track for a gain of 7.7% this month, more than twice that of the S&P 500, the AP reports. The Dow Jones Industrial Average fell 68.30 points, or 0.22%, to 30,355.67. The Nasdaq dropped 49.20 points, or 0.38%, to 12,850.22, and the S&P 500 closed at 3,727.04, down 8.32 points.

Investors shifted money away from technology companies, which have been among some of the biggest winners since the pandemic began. Industrial and financial stocks also fell broadly. Those losses outweighed gains in health care stocks and companies that rely on consumer spending. The market’s pullback follows a strong, record-shattering run on Wall Street in recent weeks amid optimism that coronavirus vaccinations will pave the way in coming months for the economy to escape from the pandemic's grip. The latest round of aid from Washington was mostly expected and it would have taken a much bigger package to really make markets jump, said Charlie Ripley, senior investment strategist for Allianz Investment Management.

(More stock market stories.)

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