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Stocks Slip, Ending 4-Day Winning Streak

Investors shrugged off a lot of bad news last week
By Newser Editors and Wire Services
Posted Jan 11, 2021 3:30 PM CST
Stocks Slip, Ending 4-Day Winning Streak
Stocks of smaller companies were down, with the Russell 2000 index slipping 0.2%.   (AP Photo/Mark Lennihan, File)

(Newser) – Stocks closed lower on Wall Street Monday as trading cools in markets around the world following record-setting runs. The S&P 500 fell 0.7%, breaking a four-day winning streak. Analysts said a pullback was no surprise following the big rally recently for everything from stocks to bond yields to commodities amid a wave of optimism, the AP reports. At the same time, the worsening pandemic continues to slam the economy. Treasury yields continued to rise, partly on expectations that the US government is set to borrow a lot more money for stimulus programs. That has investors raising their expectations for economic growth and inflation. The S&P 500 fell 25.07 points to 3,799.61. The Dow Jones Industrial Average dropped 89.28 points, or 0.29%, to 31,008.69, and the Nasdaq composite fell 165.54 points, or 1.25%, to 13,036.43.

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With Democrats set to take control of Washington, investors expect Congress to try soon to deliver more stimulus to the economy through larger cash payments for Americans and other programs. That’s building on top of enthusiasm already built about a powerful economic recovery coming later this year as COVID-19 vaccines roll out. The market managed to essentially shrug off much of last week's bad news, including the attack on the Capitol on Wednesday, surging virus cases, and a disappointing employment report, said Julian Emanuel, BTIG chief equity and derivatives strategist. That both speaks to the market's resiliency and could signal a change to "a more speculative stage in the bull market," he said.

(Read more stock market stories.)

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